Stock market review (Rally running out of steam?)
The market basically went no where last week and actually closed lower overall. I think this rally is now running out of steam and we are nearing the next wave down. In my latest video I look at just how different things look depending on which index you are looking at. The Nasdaq has retraced over 70% and sits above all major moving averages where as the Russell 2000
has only retraced 38% of the prior move down and sits below all major moving avergaes and has broken through and stayed below the long term trend for the 11 year bull market that I think is now over. When the vast majority of small caps are being slaughtered along with a huge amount of large caps accross multiple sectors and just a handfull of tech stocks are keeping everything afloat, that is not a real Bull market. A new bull market will require broad participation and that is not present. So I still believe this is a Bull trap and it is doing a very convincing job of being so, as overall sentiment has been continuingly moving away from bearish over the last month as calls for a new ATH get louder.