The weakness last week in U.S. stocks was entirely expected. As I mentioned in last weekend’s article, the technical condition had become quite overbought and the market was overdue to take a breather and pull back a bit. Also, our SectorCast rankings had moved from bullish to a more neutral bias.
Last Monday was a banner day for most indices with S&P 500 hitting at new 46-month high of 1422. Alas, a week later, today, it closed at 1382, down nearly -3%. The NASDAQ and DJIA exhibited similar behavior.
The weakness last week in U.S. stocks was entirely expected. As I mentioned in last weekend’s article, the technical condition had become quite overbought and the market was overdue to take a breather and pull back a bit. Also, our SectorCast rankings had moved from bullish to a more neutral bias.
Last Monday was a banner day for most indices with S&P 500 hitting at new 46-month high of 1422. Alas, a week later, today, it closed at 1382, down nearly -3%. The NASDAQ and DJIA exhibited similar behavior.