Time to be careful as there are more technical signs that all is not well:
1. dead cross firmly on the Nasdaq since 28 Feb (impending for SPX)
2. Toppish head and shoulders pattern seen on both
3. no signs of sustainable upward momentum yet (need to see a breakup of the near term downward channel for a start)
Hence, do not be too eager to bottom fish and when we do (yeah, itchy fingers happen), cut losses fast if wrong (unless one is a long term investor who is ok to dollar cost average on stocks with proven long term fundamentals).
The strong sectors right now are in the oil, metals, defence and utilities. The rest could continue to mostly languish or enjoy only short term bounces from oversold conditions.
On the fundamental front, rising oil/commodity prices and high inflation of above 5% is always a precursor to a recession (thou it could still be months away but markets tend to be forward looking).
Perhaps this could turn out to be yet another short term steep correction (like the many in the past decade), be flexible and nimble. It's ok to just let the technicals tell us what to do even if we are noob on macro economics.
Stay safe and good luck.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is NOT a trade advice. Please your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you.
1. dead cross firmly on the Nasdaq since 28 Feb (impending for SPX)
2. Toppish head and shoulders pattern seen on both
3. no signs of sustainable upward momentum yet (need to see a breakup of the near term downward channel for a start)
Hence, do not be too eager to bottom fish and when we do (yeah, itchy fingers happen), cut losses fast if wrong (unless one is a long term investor who is ok to dollar cost average on stocks with proven long term fundamentals).
The strong sectors right now are in the oil, metals, defence and utilities. The rest could continue to mostly languish or enjoy only short term bounces from oversold conditions.
On the fundamental front, rising oil/commodity prices and high inflation of above 5% is always a precursor to a recession (thou it could still be months away but markets tend to be forward looking).
Perhaps this could turn out to be yet another short term steep correction (like the many in the past decade), be flexible and nimble. It's ok to just let the technicals tell us what to do even if we are noob on macro economics.
Stay safe and good luck.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is NOT a trade advice. Please your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you.
Comment:
Looks like the bottom is in for now. Time to swing up for the near term esp when a number of stocks forming mini reversal patterns (namely inverted Head & Shoulders).