Equity Bulls Running Riot, Sentiment Lopsidedly Bullish – Market Risk High

posted in: Economy, Equities, Technicals | 0

Large-cap bulls are on the rampage. Sell-side analysts are egging them on, as they continue to lower June-quarter earnings estimates for S&P 500 companies. Some sentiment readings look dangerously elevated. Equity bulls are not taking a break. They have been … Continued

Bulls Riding Strong November Momentum, But Likely To Face Strong Opposition From VIX, Which Currently Sits At Support

posted in: Derivatives, Equities, Technicals | 0

Stocks have done very well this month, pushing the major equity indices into overbought territory. Several other metrics are extended but not extreme. This should give the bulls an opportunity to continue to ride the momentum, but can they pull … Continued

Heavyweights MSFT And AAPL Last Week Rallied To New Highs But Only To Then Reverse Lower – Potentially Ominous Ahead Of Earnings

posted in: Credit, Equities, Technicals | 0

Several leading stocks such as MSFT and AAPL posted new highs last week and then reversed lower. This took place just ahead of 2Q earnings results and indices such as the Nasdaq 100 and the S&P 500 have had massive … Continued

Amidst Elevated Investor Optimism And Expensive Multiples, S&P 500, Nasdaq 100, and Russell 2000 Denied At Crucial Resistance

posted in: Equities, Technicals | 0

After a rip-roaring rally since last October’s bottom, major US indices stopped at what could turn out to be make-or-break resistance. Sentiment is not frothy but elevated enough to cause unwinding, and multiples have only expanded since the end of … Continued

Digestion Of Powerful Rally Of First 2 Sessions Possible Near-Term; Medium- To Long-Term, Sentiment Remains Suppressed

posted in: Equities, Technicals | 0

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

After Tough September, Major US Equity Indices Ready For Relief Rally – Magnitude/Timing Notwithstanding

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

Markets Likely To Be On Pins And Needles Until Fri, When Powell Speaks At Jackson Hole

posted in: Economy, Equities, Technicals | 0

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

Breakouts Imminent On Major US Equity Indices, Staying Power A Question Mark

posted in: Derivatives, Equities, Technicals | 0

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