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.
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NZD/USD advances to near 0.6200 due to risk-on mood, Fed interest rate decision awaited
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Gold price stalls post-FOMC pullback from all-time peak; lacks firm intraday direction
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Australian Unemployment Rate expected to hold steady at 4.2% in August
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Ethereum could rally to $2,817 following Fed's 50 bps rate cut
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