By Tyler Durden
The Run Ends At The Highs
It always fascinates me how technical analysis is, more often than not, confirmed by some event. As I noted in last week’s missive:
“Currently, the ‘bulls’ remain clearly in charge of the market…for now. While it seems as if much of the ‘tariff talk’ has been priced into stocks, what likely hasn’t, as of yet, is the rising evidence of weakening economic data (ISM, employment, etc.), weakening consumer demand, and the impact of higher rates.
While on an intermediate-term basis these macro issues will matter, it is primarily just sentiment that matters in the short-term. From that perspective, the market retested the previous breakout above the March highs last week (the Maginot line) which keeps Pathway #1 intact. It also suggests that next week will likely see a test of the January highs.”
“With moving averages rising, this shifts Pathway #2a and #2b further out into the August and September time frames. The potential for a correction back to support before a second attempt at all-time highs would align with normal seasonal weakness heading into the Fall.”
As shown in the updated “pathway chart” above, the market did indeed attempt to test all-time highs in …read more
Source:: Zero Hedge