The US stock market has recently shown a rare sustained pump momentum, with the S&P 500 index remaining above the 20-day MA for 68 consecutive trading days. This performance sets a record for the longest stretch since 1990, highlighting the strong momentum in the current market.

Many market analysts believe that this unusual persistence may signal an upcoming pullback. They generally expect that the main purpose of this pullback will be to correct the gap with the 20-day MA. Typically, this correction process may manifest as sideways consolidation or a slight decline.

However, it is worth noting that despite the market potentially facing short-term adjustments, the overall trend remains positive. Investors should stay vigilant while also recognizing the current resilience of the market.

For investors preparing to participate in August trading, margin management will become key. As long as there is enough margin maintained, it can effectively reduce the risk of liquidation even amidst potential fluctuations. This reminds us that the importance of risk management is even more pronounced during periods of increased market volatility.

Overall, although the market may face short-term adjustments, long-term investors may see this as a potential buying opportunity. At the same time, short-term traders need to be more cautious, closely monitor market trends, and adjust their strategies at any time.