Bounce (check), Stall (I think so), Fall (next)
The S&P 500 ended the week with a modest gain of 0.55%, but not without its share of volatility. At one point, the index dipped nearly 2% by Thursday before staging a remarkable recovery of almost 2.5% to close the week. This is an easy environment to become confused.
Two weeks ago I wrote about the risk of the market entering a ‘grey area’ similar to what transpired from during the initial stages of the August - October 2023 decline. A multi week period of uncertainty that swung both bull and bear participants around. This thought was presented last week the déjà vu scenario.
This week’s newsletter will revisit the déjà vu thought, provide short term levels to monitor through next week to maintain a bearish lean (or dismiss it), and provide update to all three category trade ideas (US Small Cap Equities, Outside of US Equities, and The Gold Trade).