The bulls are right on the cusp of new all-time highs on SPX
But the breadth divergence is the worst I’ve seen in a very, very long time.
As I have mentioned on a near daily basis, something is certainly off with this market. Most stocks are not rallying higher, and almost 62% of them are trading below their 40-day moving average, much less at their all-time highs.
It is certainly a stock picker’s market, and you have to be careful about where and how you are allocating your capital. While I have yet to put any new shorts in place, I do have a number of trade setups should I need to, found in the list below. While I have a huge concern for the overall health of this market, it hasn’t materialized just yet into a full-blown bearish trading mentality.
But stay tuned…
Here’s the bearish swing-trading watch-list to guide you…
