Given the impressive surge since the election the markets have finally begun to relent. Many forecasters anticipate a pullback to 2150 before a larger move above 2214. I disagree. Given the price action going into the highs, there was a lot of indecision along the way (doji, shootingstar, hangman candlesticks = indecision). The optimism supporting the run up rested in the election promises of Trump. However, as his cabinet is put together we see that those promises are fading. Who would of thought?? (sarcasm) His website indicates that infrastructure spending will be closer to $550 billion, as opposed to the $1 trillion promised. $CAT recently came out saying the markets were too optimistic on the company's forecasts. November insider sales outpaced buys by a large margin, possibly confirming insiders views that prices are too optimistic. I believe this run up will come down as fast as it went up. Further, everyone expected Dodd-Frank to be repealed. Now we are learning only the 'bad' parts will be repealed. Same with Obamacare. Sounds like the compromises are already taking effect.
Happy Trading!
Happy Trading!