3 Reasons Why Spx is Due for a Pullback

Technically the market has broken the uptrend started with the low of 11/25 and tested again on 12/20 and 1/30. The 14-day RSI has also just come off overbought levels thus triggering a sell signal.

Individual investors are more bullish than anytime during the past 6 months. The weekly sentiment survey by the American Association of Individual Investors shows 51% bullish, which is higher than at any time going back until at least the 9/22 survey. Having retail involvement is generally sign of a healthy market, except that

Gold Approaching Sell Target of 1650

In a WhatIf post from a week ago we were expecting a bounce in the Gold market with a sell target of around 1650. Spot bullion is now trading at 1635 with daily RSI in the 50's. We are approaching the target and Gold is no longer oversold so it would be appropriate to consider the timing of an entry. Recently the metal has been trading with a positive correlation to equities, and yesterday the S&P500 printed a new multi-month high, so we should wait for a change of sentiment in the equity market before establishing a short in Gold.