Divergence in S&P 500 may signal incoming correction
Indices have been hitting all time highs but the number of stocks trading above their 50MA has fallen. I believe we may finally be looking at a correction. As we get into the next quarter earnings season, it will be whether stocks can continue to exceed expectations and keep the market excited about what's ahead.
The AI hype may fade quickly and in a deadly way. Lets also not forget that the dollar has been on a decent run, this could hurt earnings of our multinational companies and lead to a few misses on the bottom line.
Point of this message? Trade widely going into the April through June months. Things have been less volatile and markets have been giving us a melt upward, however I think the chances of trading lower than we are over the next 90 days is relatively high.
The AI hype may fade quickly and in a deadly way. Lets also not forget that the dollar has been on a decent run, this could hurt earnings of our multinational companies and lead to a few misses on the bottom line.
Point of this message? Trade widely going into the April through June months. Things have been less volatile and markets have been giving us a melt upward, however I think the chances of trading lower than we are over the next 90 days is relatively high.