Stock Market Risk Increasing
Craig Thompson, ChFC
![Craig Thompson, ChFC]()
Craig Thompson, ChFC
"Active" Money Manager | Using technical analysis to manage risk and maximize returns in the financial markets.
In our July 18th newsletter and those that followed, I talked about how market internals were warning us that stocks were susceptible to a short-term pullback.
“Many indicators are suggesting this stock market advance is likely to continue. However, near term, the current extreme in investor complacency/fearlessness that emerged last week plus July seasonality warn that the sharp rally off the Brexit lows is unlikely to continue much further, if at all, without at least a minor pullback first – which I believe will occur between now and month end.”
“Longer-term stock market conditions look positive; however, we could see some short-term market weakness before stocks resume trending up.”
As I mentioned in the newsletters that followed, market internals were warning of a pullback, however we had not gotten confirmation that would show up in price action, momentum indicators, and the VIX. While it took longer than expected, on Friday we got confirmation in all three.
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