If there was a time to be cautious, I'd say now is that time. As we head into the fall season, there's going to be a second wave of business closures and layoffs. Food shortages are likely going to escalate, and public unrest as well. At some point the stock markets are going to start reflecting reality, and when they do it will be sudden and without obvious warning.
Looking at the S&P500 index, it's reaching the top of the trend and will be slamming into resistance and all the fun stuff that happens like profit taking and margin calls.
While the above is noteworthy, there is also the Volatility Index (VIX) to consider as well, as it is currently pushing to break out and shoot back up like a spring.
Next we have the S&P500 PE (price to earnings) Ratio, clearly heading higher like in 2000 and 2009.
If the stock markets do crash (again) and the S&P500 drops to 2K, its only a bad thing if you're holding the bag. Considering that only a handful of Stocks in the US have actually made noteworthy gains this year, it will be interesting to see if the rest of the S&P500 drops further or holds.
Stay safe. thanks for dropping by.
