Friday, July 15, 2011

Stock Market Churning Near a Major Top or Poised to Break Out?

Stock prices in the U.S. have been bouncing up against major resistance for months.  The Dow Jones Industrials, S & P 500, and Russell 3000 seem to have made double, triple, or even quadruple tops.  This broad price action has occurred despite how on any given day, good news drives stocks up or bad news drives stocks down.  


The big picture is that despite record profits and a systemic bias to drive up stock prices, the market seems to have stalled out.  Raising cash for an ultimate reallocation away from small caps, consumer discretionary stocks, and even technology and toward multinational large caps, agricultural commodities, and emerging market equities and fixed income, seems advisable.


Steve Lehman
LehmanInvest.blogspot.com/


S & P 500:  1312
Russell 2000:  827

No comments:

Post a Comment