| | | | TURNMIRE TRADING NEWS MINUTE
Danger Zone?
On Friday’s Morning Monster, Jeffry pointed out the S5TH is in a “danger zone”.
Quick recap: The S5TH ticker tracks the percentage of S&P 500 stocks above their 200 day moving average.
Jeffry pointed out that right now, as the S&P is sitting near all time record highs, only 66% of stocks in that index are participating in that rally.
That puts 44% of S&P stock on the back foot.
It’s a concentration that he’s seen before and tends to indicate we’ll see a dip — if not a crash — in the index.
Think of it like building a tower out of blocks. Without a wide, solid base, the taller you build the tower, the more likely it is to fall apart and topple over.
He also went on to point out a head-and-shoulders pattern that has formed, telling him we should expect to see a downswing in the S5TH, and consequently the S&P 500 overall.
| | | | |
|
|
No comments:
Post a Comment