The bulls got caught looking higher this week…
While many investors have had high hopes about a successful retest of the February stock market lows, I have been exercising caution.
Though I believe that the broader bull market is still alive, I am concerned that this correction may need to see new lows before a durable rally to new highs can begin.
To sum things up, my indicators have been anything but certain about this retest. And it’s showing up in the price action – it’s been a sloppy mess out there!
Typically, the stock market doesn’t waver so much on a retest, so this is a red flag for me. And it hints that we should see another push lower at some point in the days/weeks ahead.
Many technical indicators that I follow support this as well. And I’ve been sharing these thoughts on Twitter all week: follow me at @MarkArbeter.
Below are several tweets and charts that I shared yesterday and today to illustrate this:
#1
Hey Miss Market. Just break the h— down to new lows, maybe give us a 24XX print on the $SPX so we can be on our way to 3,000. This slop to no where is really weighing on people.
— Mark Arbeter, CMT (@MarkArbeter) April 6, 2018
#2
Updated Chart: Generally at I.T. to L.T. bottoms/retests, there is not this indecision and slop currently being played out. A switch gets hit from down to up and it’s usually not in slow motion. We shall see. $SPX pic.twitter.com/YpYIor6zyL
— Mark Arbeter, CMT (@MarkArbeter) April 6, 2018
#3
Couple things I did not like on the recent price test. BPI divergences on $SPX, $XLK, $XLF At other bottoms during this bull, saw bullish divergences. Potential for more testing/new lows? pic.twitter.com/tT8PCTbkX4
— Mark Arbeter, CMT (@MarkArbeter) April 5, 2018
#4
Financial BPI divergence. $XLF pic.twitter.com/HLWniA7VD8
— Mark Arbeter, CMT (@MarkArbeter) April 5, 2018
#5
Technology BPI divergence at recent low. $XLK pic.twitter.com/qZDwKhp6ER
— Mark Arbeter, CMT (@MarkArbeter) April 5, 2018
Feel free to reach out to me at arbetermark@gmail.com for inquiries about my newsletter “On The Mark”. Thanks for reading.
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity
