No Shortage of Clues
Traders, while prices in the S&P's have broken above the 2000 level, they are not gaining any meaningful traction higher. As we all know, this rally is very deliberate and lethargic and there are certainly some warning flags. However, despite this, it is tough to build a bearish case absent some meaningful pull-back.
Some of the most recent chatter for the bears revolves around the Russell 2000/IWM and how recent weakness suggests underlying weakness for markets in general.
Chasing Tops - A Colossal Waste of Time
History however does not offer too much conviction in trading off these divergences. In fact only about 50% of divergences result in any meaningful market top.
I am not saying there are not risks out there to the market, however I have lived through similar phases before in my 20-years as a trader. Trying to pick the top is a colossal waste of time. Being a passive bull makes far more sense while making sure that I constantly take the pulse of the market so that when prices to begin to deteriorate, appropriate actions can be taken.
Recommended Content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.