The stock market is messy, not trending higher, and frustrating many investors who haven’t studied their market history.
This type of market environment, this time of the year, is EXACTLY what we should expect as investors.
If the market was NOT acting this way, then that would be weird.
Sometimes the market ignores seasonal trends. And that tends to be an important signal.
But, to be clear, this is definitely NOT one of those times.
The market is doing exactly what it should be doing.
Over half the stocks on the NYSE are below their 200 day moving average. Same with the S&P500.
Here’s what the index itself looks like near the lower end of this multi-month range: [Read more…]