It is my guess that the US stock market is entering into a cooling off period. If I look at a broad range of stocks, I see few making new highs.
Also, I've seen a quick flip-flop from just a few weeks ago as so many of our oscillators and Psychology indicators were either at bullish or very close to bullish zones. Today, they have all moved quickly in the other direction. You can see that in this chart.
The 21-Day Oscillator touched that +100 level and has now rolled over.
So, we think the next few months may take a temporary sabbatical, but that does not mean we should be bailing out, just remaining cautious.
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