Over the past week, the markets have shown a listlessness that they haven’t exhibited since last December. While its possible we’re looking at exactly the kind of consolidation needed to prepare for another leg towards the all time highs, its equally if not more likely we could be looking at the weakness that often precedes a significant drop, of the type we saw back in August of last year.
Seasonally, we’ve reached the beginning the the weakest six month stretch of the year, with the S&P 500 just off of its post-February highs. While a major drawdown is not necessarily imminent, below is a set of charts that outline the dizzying technical confluence of trend-lines that remain in play as the market pauses.
Keep your stops tight, and good luck out there!