Mid-week market update: Don’t get me wrong, I am still bullish. The Wilshire 5000 flashed an important MACD buy signal on the monthly chart at the end of October. While MACD sell signals have been hit-and-miss, buy signals have historically resolved themselves in strong gains with minimal drawdowns.
The MSCI World xUS Index also flashed an interim monthly buy signal, assuming that it stays at these levels by the end of November.
These are all unequivocally bullish signals for stock prices in the longer term, but short-term conditions suggest that the market is nearing a stall zone.
Minor stall ahead?
Tactically, there are a number of signs that it may not be wise to add to long positions here. The SPX traced out a doji candle on Monday on a gap up, which can be a sign of