by Avi Gilburt
In a recent update, I pointed towards the 2,335 SPX region as the next likely target in the market. This week, the market has finally obliged, and taken us to our next waypoint.
As I have been noting for several weeks, the market has been much more bearish than I had expected with only a slight drop off the all-time highs. Moreover, my ideal expectations had us dropping even lower towards the 2,335 SPX region before setting up another rally attempt.
But, the fact that the market has become so bearish of late, even though we have not dropped much off the highs, tells me that the market may only be setting up the bears for a whipsaw they may not soon forget.
When I look across the web and read what many are “feeling” right now, most seem to still believe the market has gone farther than it should. Many are now calling this the end to the “Trump Rally.” Many even believe that the market has hit its high for 2017. Week after week, we see one top caller after another coming out with reason after reason as to why the market is just “too high.” The market has supposedly so far surpassed its fundamental valuation that many are absolutely convinced we have seen a blow-off top.