Value Line’s gradual lift shows why worry about SPX being overbought or overvalued is likely misplaced Array ( [cookie] => f5fd92-e22639-fa7c92-d9b71b-181f74 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_macro [visitor_id] => 565831 [reason] => [method] => ) 1
ATTENTION: As I am out of town, I will unfortunately not be able to write a technical report Thursday (3/14) or Friday (3/15) this week.
I continue to see the US stock market as being attractive, technically speaking, and do not feel sufficient risk is there to warrant a selloff at this time. While momentum gauges like RSI have gotten overbought, there remain precious little other evidence with regards to frothy speculation to excessive valuation measures that would warrant a major selloff. Powell’s recent dovishness likely won’t change too dramatically despite a second “hot” CPI reading, and it appears like bounces in US Dollar and Treasury yields could prove short-lived before weakness back to new monthly lows into this Summer. Rallies up to SPX-5250-5300 look possible ahead of a possible late March pullback into April. However, without any evidence of this, it pays to wait for signs of weakening breadth and/or momentum before expecting a selloff of any sort.
Wednesday’s trading proved to be nearly the complete opposite of what was shown in Tuesday’s trading. While Technology fell more than 1% to cause $SPX and $QQQ to finish negative, the broader market fared much better. Eight sectors finished positive on an Equal-weighted basis.
Subscribe Today to FSI Macro
If you are an existing member, to see your special offers.
|
|||
Claim This Offer! |
|
|||
Claim This Offer! |
At FS Insight we offer a 30-day risk-free cancellation period for all new memberships.
View all FS Insight products with our exclusive Black Friday offers!Why FS Insight
FS Insight helps you invest confidently with the same research banks and hedge funds use.
Daily Updates from Tom Lee
Start your day with Tom Lee’s pre-opening bell report. Navigate the trading day with Tom’s daily macro minute video and updates on key developments.
Real-Time Alerts from Tom Lee and Mark Newton
Stay in the loop with FlashInsights, real-time commentary on market-moving events delivered instantly from our research heads to you.
Daily Technical Strategy
Report
and Video
Tactical opportunities and actionable signals, including daily in-depth analysis on current market technicals.
Monthly Market Update Webinars Presenting Timely Top Ideas
Get a behind-the-scenes look at our top stock ideas. Learn what makes each pick timely at our monthly webinar and Q&A with Tom and Mark.
Access Stock Lists Developed by Tom Lee and Mark Newton
We offer a variety of stock lists across methodologies and time horizons. Choose the portfolio that best fits your investment style.
Engage with Tom and Mark
Your membership includes members-only webinars and fireside chats. Join Q&As with our research team, CEOs, and industry experts across AI, geopolitics, and more.