Antonio’s perspective is back this weekend!
The US stock market’s rally has been impressive since Donald Trump took Office, but there is no way to know if it will continue or not, after having hit some of the analyst goals given for the entire year. The major indexes are now up about 15 percent from November lows and for anyone who scooped up more speculative shares, such as small caps or high beta stocks on weakness, the profits could be even higher.
I truly believe the easy gains have already been made, and the losses on any downside move at current levels could be very sharp, erasing any profits that have piled up. As I have mentioned in several tweets last week, the market is overextended and the current RSI levels are unsustainable. It simply must pullback before surging again. Im starting to see lot of big caps with charts showing signs of exhaustion and having problems to keep going. The market is stretched and any pullback should be seen as a buying opportunity as the broad trend is likely to remain up. Below you can see the SP500 chart with the technical pivot points to take in consideration going forward.
The SP500 Chart:
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.
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