I think that over the next week or so, equities will have a meaningful selloff. Here is why:
Extreme Bullish Sentiment
Weak action in equities
Appreciation of oil prices
Markets due for profit-taking
AMZN – Excessive Bullish Sentiment / overbought and testing uptrend
SPYs testing uptrend and the highs from September and October
The financials are the most overbought that they have been since January 2018. A 10% decline happened just afterwards.
Significant resistance just overhead in small caps
MSFT gapped up on an earnings beat. It is starting to refill the gap
GOOG missed revenue estimates…action had been very weak
Weak action in AAPL – despite beating estimates AAPL closed near its lows today
Oil is +45% since December. There is resistance around the $65 level. The uptrend is being tested.
Trump vs Powell. POTUS suggests 100 basis point cut. To put this into perspective the emergency cut after 9/11 was ‘only’ 50 basis points
Mueller report Blah, Blah, Blah…
Venezuela / possible US military intervention