After setting a series of all-time highs it equity markets may be ripe for a trader’s pull-back. This is typical any time there’s been a material run up in the markets.
While the climb has been orderly, the SPX is showing over-bought characteristics at these levels. Based on our numbers, a pull-back toward the 3035-3050 level would be typical after this kind of move.
This pull-back would also be in line with the bigger overall projection for 2019. In fact, based on projections from nearly a year ago (which is so long ago in market time as to be barely relevant anymore), the SPX has exceeded expectations for 2019.
For the week, the market may yet trend higher. In fact, this may be a good week for the markets as it’s the last full week before the holiday season starts to rev up. But things may start to get dicey once we get into the short Thanksgiving week.
Trying to predict how much higher an all-time high trend goes before a pull-back — especially in light of the circus that is Washington these days — is pretty tough. For now, since there really isn’t any ‘resistance’ in this market, we’ll just have to see how over-bought things can get.
“It’s Christmas Theo. It’s the time of miracles,” Hans Gruber, Nakatomi Plaza, 30th Floor
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BigFoot), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from BigFoot. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BigFoot is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the BigFoot’s current written disclosure statement discussing our advisory services and fees is available for review upon request.