There have been pretty choppy moves since highs got put in back in November 2021. For example, last week, we saw huge panic sellings overall in the stock market, then people went on a buying craze where the S&P 500 pop-up hit all-time new highs, and the very next day, the markets rolled and sold off once more.

The markets continue to struggle with a lot of mixed signals and are trying to figure out what will happen next. Most sectors are in the downtrend and bearish stage. It is not great when the stock market hits all-time highs while most sectors are going lower. That generally means the blue-chip stocks are doing most of the heavy lifting with decreasing support. Whichever way the markets break from this consolidation between the November highs and current December lows, it will likely be a pretty big move.

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Big money is moving into the defensive sectors, and that is usually a sign that the big money players are trying to position their money in sectors that no matter what happens in the economy, they will hold value. For example, we are still going to need utilities and consumer staple products. So that is where money has been going.

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