On a regular basis, we all need to listen to the markets. They process a tremendous amount of information. They reflect the opinions of lots of buyers and sellers. Their price action can tell us a great deal about the economy, financial conditions, and sentiment.
Joe Feshbach helps us to do just that based on his 40+ years trading the financial markets. He had expected that the S&P 500 might rise no more than 2% above 4100, providing a selling opportunity for traders. Here are his current views for both traders and investors:
"This past week confirmed we’re in the previously-discussed corrective process and longs should wait patiently until the sentiment indicators provide a buy signal. In addition, the reliable stochastic I monitor (that helped me catch the last rally) recently went negative. In a no-landing scenario we could be stuck in a miserable trading range for a while. It will be very important to watch Financials. They’ve held up extremely well so far this year. They just started to falter late last week. If they correct more, the market will definitely go down with them."
Thanks Joe. We will be monitoring the S&P Financials closely (chart).