E QUESTO NON E' ZEROHEDGE...
proprio no
This titanic stock market has that sinking feeling
The U.S. stock market keeps trending higher at a relatively brisk pace, but there are signs of trouble. Yet most investors seem blissfully unaware.
Veteran market technician Jeff Bierman likens investors nowadays to passengers and crew
aboard the RMS Titanic . The ship’s captain ignored six warnings of sea ice in the area, and continued to travel at maximum speed. When the crew saw a large iceberg ahead, it was too late. After the Titanic hit the iceberg, most passengers did not realize the boat was doomed. To help distract passengers, the captain ordered the ship’s band to play, which they did — until 30 minutes before the boat sank.
Before we examine the dangers, let’s start by looking at the indicators:
Technical Indicators (daily chart)
S&P 500
SPX, +0.04% is above its 50-, 100-, and 200-day MA = Bullish
MACD (S&P 500; 19,39,9) is above the zero line = Bullish
Su Spx 500 c' è un segnale d' inversione (vedi giornalino).
Preallarme!
MACD (S&P 500; 19,39,9) is even with its signal line = Neutral
S&P 500 support @ 2354
Sentiment Indicators (+RSI)
II survey: (March 7): 57.7% Bulls; 17.3% Bears = Bearish
AAII survey: (March 8): 30.0% Bulls; 46.5% Bears = Neutral
VIX: @ 11.37 = Bearish
RSI: (S&P 500) @ 64.03 = Neutral
According to the indicators above, the market is overbought,
volatility is in the basement, and
bullish sentiment is extreme among both financial writers and professional money managers. Even though these are bearish signals, the market
continues to climb, though at a slower pace. MACD is still bullish, but the weekly MACD is starting to flatten out. If MACD rolls over, that is when the market could accelerate to the downside.
Algos run the show
The market is acting differently than in previous years. You may have noticed that as soon as the S&P 500 retreats intraday, even for a few minutes, the index suddenly reverses and
spurts higher. Why? Computer algorithms programmed to buy on every dip are responsible for most of the intraday trading activity. The algos have used this strategy since the Brexit blow-off bottom last June, and they will continue until it stops working.