For the past few weeks, we’ve been yammering on about the numerous and compelling bearish reasons for a more negative forecast for the market, but have cautioned that, without actual pricing action to confirm those arguments, it was dangerous to let them influence our approach.
The most important aspect to our approach to investing has always been to respect the broader technical profile and pricing action above all else, and for yet another time last week, we saw why.
There were a couple of possible yellow flags into the end of last week, but It’s not clear whether those were more a factor of some short-term overbought conditions in the Nasdaq (and Nasdaq 100 in particular), or if it was the start of a broader sell-the-news reaction to earnings… especially as we head into the months where the market has shown a historical tendency towards underperformance.
We’ll see how it goes, but the market remains in solid technical shape, and that means we’ll simply continue to dig for fresh ideas to bring to our community.
Let’s take a look at some charts:
At the time of this post, RevShark had no positions in any of the stocks mentioned.