Wednesday, October 23, 2013

Why Stock Market Bulls Should Worry -- Chart

Heck, I'm a stock market bull, and this chart worries me.  Perhaps it should worry you ...


(Updated chart)

The S&P 500 has been channeling higher, and it's at the top of its channel.  Could we see a correction of 2 to 3 weeks? Sure.  But a correction -- if it comes -- could also be shorter and shallower for a whole bunch of reasons.

And there's also the potential that the S&P 500 could break out from here and head higher, simply because it seems most traders are betting on a pullback.

So, I worry, but I don't let it stop me from trading. I took three positions off today, and added two new ones. Look for a post on that in a bit.

7 comments:

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