Many cross currents are affecting the markets right now. With the House’s failure to vote on a repeal of ACA (bad), “window dressing” by managers at the end of the first quarter (mixed), new month capital inflows (good), trade war talk (bad), and 1st quarter earnings season ramping up in 2 weeks (mixed), it’s no wonder investors have been concerned and undecided. Yet, with most of the major market indexes still trading above “key” technical support levels, any weakness could be short lived. The “buy the dip” crowd did show up last week and again today. However, the upside price action was muted and was not able to drive prices higher than recent peaks. New “distribution days” have also occurred which has kept the current tally at uncomfortable levels. When distribution (professional selling) piles up quickly in the span of several days or weeks, markets can signal a top may be nearing.
We believe the market is nearing an important flash point. A significant sharp move (in either direction) could begin at any time. While we don’t know which way the market will ultimately go yet, its current trend is still bullish. We recommend investors remain optimistic, but, with growing evidence of increasing selling pressures and internal deterioration, stay very alert! Keep your eyes on Congress and the “pro-growth” and “lower tax” initiatives they propose. If those are expected to pass, the market should move higher. If they appear D.O.A., then the market will come under immediate selling pressure.
Please check back to this page for future “current market outlook” updates, or follow us on Twitter at @TriumphantPM for more frequent alerts.
Have a Triumphant day!
The information in this article is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Not to be used as legal or tax advice.
©2017 Triumphant Portfolio Management, LLC.