I am about 90% sure that the 5 popular stock-market indexes (DJI, S&P 500, NYSE, Nasdaq 100 and Russell 2000) have all topped out this week.The Russell 2000 was the first back on Monday- 4/29 at near 1,600 and could now lead the way down, as it did in the bear market of 2008/2009.The other 4 indexes all topped last Wednesday 05/01.
Now we need to "confirm the "reversal." We need to see some strong downside volatility.One thing that recently added some "negative sentiment" was our Federal Reserve Chairman using the the word "transitory" when speaking about inflation. The market took that to mean "no more interest rate cuts for the near future" and took a dive. Today's "Job Report" was stronger than expected, so maybe another "interest rate cut" is back on the table.
Happy Trading,
Robert H. Anderson