Monday, April 17, 2017 3:04 PM EDT
It is normal and to be expected for bullish trends to experience pullbacks or retracements. Typically, a healthy trend will see countertrend moves that remain above the three major Fibonacci retracement levels shown below. As of April 17, the S&P 500 ETF’s (SPY) post-election rally remains in the “normal pullback” zone.
Is The Bigger Picture Showing Some Bearish Cracks?
This week’s stock market video reviews the impact of the recent pullback on the longer-term outlook. The video also covers the emotional impact of portfolio drawdowns.
A Bearish Reference Point
The chart below shows the S&P 500’s 100, 200, and 300-day moving averages during the stock market’s topping process in late 2007/early 2008.
The same moving averages as of April 17 are shown below. Our concerns would increase if the chart below started to morph into a look similar to the chart above.
Disclosure: This post contains the current opinions of the author but not necessarily those of Ciovacco Capital Management. The opinions are subject to change ...
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Disclosure: This post contains the current opinions of the author but not necessarily those of Ciovacco Capital Management. The opinions are subject to change without notice. This article is distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. The charts and comments are not recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations are not predictive of any future market action rather they only demonstrate the opinion of the author as to a range of possibilities going forward. All material presented herein is believed to be reliable but we cannot attest to its accuracy. The information contained herein (including historical prices or values) has been obtained from sources that Ciovacco Capital
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