The Summer Rally Seems to Be Over
The market seems to have completed its summer rally. The China ETF FXI which we use as a leading indicator has moved below its breakout point at 41.03 today. This is where the summer rally got frothy earlier this summer and now ends. The S&P today is also turning key technical indicators down. As we said in our last post in late July, we don’t expect a downside breakaway to really get going until early September but the top appears to be in now.
So handle the market accordingly, we have not changed our positions since the last post on July 27 and probably will be adding to our short positions over the next two weeks. Vacation is over, school is starting, and the markets will now get more serious analysis by the players.
11:56 AM CDT