The stock market rally from the July lows (for some sectors) and from the late October/November lows (for other sectors) is a beautiful example of crowd behavior, even.
The “risk on” environment is clear with new highs for the Standard and Poor’s 500 and for the Nasdaq 100, but a correction could easily dampen the enthusiasm at just about anytime. You know it’s back to intense “risk on” when the financial media discussions return to “the Bitcoin BTC ETF” topic, as we’ve noticed lately.
That stocks have travelled upward off of July lows (for some sectors) and late October/early November lows (for other sectors) is good news for investors except that a healthy correction — or even a decent sell-off — might be in order for the longer-term health of the market.Stock Market Bearish Indicators.
Take a look at the daily chart for the volatility index:
It seems to have bottomed in mid-December, bounced a bit and late last week headed back downward.
