Well, well, well… The S&P 500 made it back on the TOP! The stock market hit its resistance level yesterday. While everybody is getting amused by politicians playing around the monetary games, before the bubble can continue, we might have another correction ahead – at least a significant pullback.
Below is our well-known market review depiction of S&P 500 with necessary trend and technical analyses.
Yesterday’s hunger for the stocks was not that significant in a number of market participants. In other words, fewer people were buying at a higher price than four days ago when more people were selling at a lower price. This engulfing manner is a first sign that breakout probability is rather decreasing.
The odds are definitely on pullback now, so do not rush into stocks, they will be offered at lower levels! The entire economy is burning, with unemployment at lowest levels ever. Companies need more people and thus, wage inflation is coming! Stock market cycle is at its peak!
Watch the volatility, a significant increase may trigger another pullback and maybe correction. At the end of the day, we are approaching May and after several years of failure, this year the famous saying “Sell in May and go away” may become a truth.