S&P 500: Elected All Time Highs
6000
Week 2: Market Health Check
Risk-Off Evaporated Quickly
Last week’s letter signaled a shift toward caution, as we closed the week with all three risk-off criteria triggered. However, this turned out to be short-lived and is likely best viewed as a false alarm. By the end of Tuesday, all three indicators had reversed. The “Navigating the Short Term” section highlighted key levels to help gauge the significance of this directional change early on.
From this analysis— the melt-up trade is back on.
Risk Off Criteria — 0/3
Three components in my market analysis define the market as either risk-on or risk-off.