This probable next correction is very odd. As the index price action is showing strong negative divergence with de ADL and the MACD (one confirming the other), there is no euforia. Is like everyone is expecting this to happen. It may be just lack of interest of the market or that is summer time.
The Fear & Greed Index is in extreme fear, that almost never happens on tops. Still I can't ignore the technicals that are at least signaling that the SP:SPX is losing strength. So this is time to manage risk. I'm tightening my stops and suggesting to sell at least part of the positions we have at some of the winners like NYSE:PFE and NASDAQ:GOOG.
We opened a short position on the index but I'm still holding some stocks. Also, if the correction actually happens would be a very good opportunity to find strong stocks for the next leg up. I will be looking for strong relative strength and 52 week highs.
VIX at 21 is hardly extreme fear. Bearish move losing momentum IMO.
dpuleo19
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@DaddySawbucks, I has talking about the CNN Money Fear & Greed Index, I left the link on the end.
DaddySawbucks
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@dpuleo19, Ahh I see, tyvm for clarify; getting crushed today LOL!
dpuleo19
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@DaddySawbucks, "This probable next correction", "I'm tightening my stops", "if the correction actually happens", " I'm still holding some stocks". I'm not getting crushed.