The Short-Term Downtrend Continued Today
The short-term downtrend continued today as the general market experienced a bearish reversal.
Junk Bonds took a turn for the worse today. The direction of junk bond prices helps confirm the direction of stock prices.
There isn't too much in the charts and indicators that I can see that suggests that a big market sell off is coming. But I think it makes sense to be very cautious at the moment after such a strong rally since the presidential election, and because of the weak seasonal period approaching.
The Leader List
Materials fell below the 50-day.
Outlook
John Murphy has pointed out that it has been a year since the market has experienced a 5% correction so it is overdue for a pullback. He also mentioned that we are entering the risky time of the year for market corrections.
The long-term outlook is positive.
The medium-term trend is up. Watching for signs of a peak.
The short-term trend is down as of July-28.
Disclaimer: I am not a registered investment advisor. My comments above reflect my view of the market, and what I am doing with my accounts. The analysis is not a recommendation to buy, ...
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