Wednesday, April 12, 2017

April Mid Month Sentiment Update

Sentiment on the market changed from positive for the short term (2 to 6 weeks) on April 8th to negative. We expect this sentiment indicator to fluctuate frequently as it measures the cumulative impact of multiple short term technical indicators on the S&P 500 ETF IVV. Intermediate patterns --covering 6 weeks to 9 months-- continue to read negative. Long term indicators 9 months to 2 years remain neutral. Additionally, the CNN Money Fear and Greed Index is moving closer to extreme fear, which might be a positive for long term investors. Using the calendar as a guide the market is overdue for a 5-10% correction. Fundamentally, earnings for the first quarter will ultimately drive performance over the coming months. I expect more volatility in the market over the coming months as the Trump legislative agenda flickers back and forth between perceived positive and negative impact on stocks. Wise investing my friends.
Please consult a qualified financial advisor before making any investment decisions. This blog is for educational purposes only and does NOT constitute individual investment advice.

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