For me, it’s not just about one indicator or one chart.
It’s a weight of the evidence game.
Since March, the bet has been Messy For Longer. We’ve expected a choppy environment. That’s what the weight-of-the-evidence and history suggested.
But now what? Are these consolidations going to resolve lower? Or Higher? Or just stay messy for even longer?
That’s what makes this all so great. I don’t know. And neither do you. No one does.
It’s a beautiful thing.
So as I weigh the evidence to decide rollover or breakout, I come to a series of divergences that put this stock market in quite the predicament.
With S&Ps and major indexes hovering near all-time highs, we’re just not seeing it from the components themselves. Here’s the Russell3000, for instance, seeing fewer and fewer new highs: [Read more…]