Image source: Pixabay
Markets sold off after testing all time highs. The S&P has now set a "double top", and markets are now consolidating in a very narrow channel. Meanwhile, markets are doing well with a bullish trend still in place. However, there also remains a negative divergence with money flows going into the market are weakening, as well as a negative divergence in momentum and relative strength.
Underneath the surface, there is some deterioration in the markets. Such are not immediate threats, but are a prelude to an eventual market correction. And with level of deviation, a price correction of between 3% and 5% at some point is not out of the question. Now is a good time to take some profits, save some cash, and perhaps buy cheap insurance in the form of Puts while volatility is at a low ebb.
Video Length: 00:04:29
More By This Author:
Gold Miners Are Benefitting From The Speculative BoomBalance Of Risks Allows Powell To Pivot
“Buy Every Dip” Remains The Winning Strategy… For Now
Comments
Log in or sign up to join the conversation.