Interesting market. It pulled back the last couple weeks and appears to be ready to move upward by the end of last week. I am still extremely cautious given how over valued the market is as a whole. However, that does not mean there are not opportunities to trade stocks and make money!
The market is sitting at a resistance point where most of the volume has been trading the last 3 months. We are in a bullish season and certainly need to respect the upward trend. Just not sure for how long.
Breadth indicators have turned positive and it looks like some of the AI trade has been unwound. The question is, has it unwound enough? A bearish divergence is still intact on the Capitalized NHNL.
The Rolling 52-week NHNL has also reversed, but the bearish divergence is also still intact there as well.
The bottom line is respect the uptrend, but trade cautiously.
