Over the last few days the SPX has followed the same path, rise dramatically and then sell off. Each time making a new low and a lower high. Seems to be some indecision in these markets. Possible time for a reversal. Plus on the daily chart we saw RSI divergence from high made 12/9 to high made on 1/9.
Comments
LeRomand
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Correct economic policy of President-elect, but caution: He could be too hasty in taking decisions. He has to set in place departmental controls, chains of command, and this takes time to implement. You forecast is right to the point.
stantrader
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@LeRomand, I agree 100% with you. The market priced in all the positives and none of the negatives. And we aren't even sure what the positives are yet, legally at least. The market is ahead of itself and the sad part is it will correct as soon as the retail investors jump in at the top. Thanks for your comment.