Stocks rallied strong on Monday and Tuesday, and Wednesday’s weakness was bought. Digestion of these gains is possible near term. Medium- to long-term, sentiment remains very suppressed. Some rally that was! From last Friday’s close through Tuesday’s high, the S&P … Continued
Investors Intelligence bulls this week hit the lowest since February 2016. Back then, the S&P 500 soon launched into a sustained move higher. As of Tuesday this week, Investors Intelligence bullish percent dropped 4.6 percentage points week-over-week to 25.4 percent. … Continued
VIX took a dive on Wednesday after getting denied at 27.50s for several sessions. Concurrently, Investors Intelligence bulls plunged 15.4 percentage points over two weeks to sub-30 percent, and the Hedgopia Risk Reward Index is rising from oversold territory. Equity … Continued
Two important data points came out last week and both are acting as headwinds. Margin debt and foreigners’ buying behavior are likely to continue to maintain the current trajectory medium- to long-term. Near-term, technical indicators are oversold, with the S&P … Continued
Major US equity indices all had a positive week last week, but with a varying degree of success. The S&P 500 broke out of dual resistance with bullish marubozu on Thursday and Friday, the Russell 2000 was denied at crucial … Continued
Investor sentiment has taken a hit in recent weeks but can continue lower in the right circumstances, although a pause is likely right here and now, helping stocks. Stocks took it on the nose in September. The S&P 500 tumbled … Continued
Major US equity indices were down last week, but recovered from the lows, as dips were bought at important support. Jerome Powell’s Friday speech at Jackson Hole this week is important in that a possible announcement of tapering of bond … Continued
The 2Q earnings season has gotten off strong. Stocks, having already rallied big into it, yawned. This is coming at a time when sentiment remains effusive and some of the tailwinds potentially turning into headwinds. VIX’s monthly chart could be … Continued
Investors Intelligence bulls crossed 60% this week. It is rare for sentiment to persist at 60 percent or higher. Yet, equity bulls at this juncture are probably wishing that happens. They need to be able to first defend the 50-day … Continued
Major US equity indices are itching to break out. The question is, what then? Indices remain stretched on several timeframes. Longs have shown dogged determination but shorts are likely to decide if the momentum will have the staying power. Equity … Continued