Our Current Market Outlook has changed to “Uptrend Under Pressure”. This signal tells growth investors that the current stock market environment is experiencing price weakness on higher volume and that investors need to be alert to the risk of further price deterioration in the near future before they deploy additional capital. Keep in mind the markets meaningful advance since the election has lifted the markets reasonably above “key” technical support levels and that any weakness could be short lived. The truth is we won’t know immediately and will have to wait & see if the “buy the dip” crowd shows up over the next several days.
The market’s quick change in character doesn’t necessarily mean a correction is coming. However, the market currently shows an elevated level of risk as a moderate number of recent declines in higher volume known as distribution are still present, including today’s action. When distribution (professional selling) piles up quickly in the span of several days or weeks, markets can signal a top may be nearing.
Remain optimistic. The market is tired but still healthy overall. A key vote is coming in Congress on Thursday. Having already responded positively to a Trump Presidency, investors will now focus on Congress and the “pro-growth” and “lower tax” initiatives they are proposing. If those are passed, the market could continue to confound the pundits into May, or even early summer, and move higher. If they are voted down, the market will come under immediate selling pressure (profit taking) and will face its first real test since the “Trump bump” began.
Please check back to this page for future “current market outlook” updates.
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.