Dear Reader,
It's been a rather remarkable 24 hours. Momentum broke down yesterday, and the Russell 2000 has spiraled under 1,750. It was just two days ago that we anticipated some sort of climb higher, thanks to a positive spin.
But we went sideways, and the rug was pulled. The S&P 500 is back under pressure as well.
We're seeing money pour out of the Mega-cap stocks after a multi-week rally.
So now what?
The Trend is No One's Friend
What a reversal. It's a sign again that we have to watch the key technical lines for the S&P 500. In this case, we screamed back above 4,100, and we've pulled back since. This isn't normal. But it's just another sign of the ongoing trends of this market.
Despite relatively low volumes, we screamed back up in the mid-60s on the Relative Strength Index in quick time. Now, the market looks like it's ready to roll over again.
Now is the time to be hedging against any market downturn. In this environment, it's important that investors understand how to manage their portfolios. When momentum goes negative, there are a few different things that you can buy or trade to hedge against your portfolio positions.
Today's Momentum Reading
WORLD'S BIGGEST INDICATORS
Recap: The World's Biggest Indicator (Momentum) is Red...
This is madness. We're seeing a lot of chop right now, and it's hard to have conviction at a time like this. We have a jobs report approaching and concerns about the economy building. I'm still very bearish, but this chop is really difficult to navigate.
What You Missed
Nick Black wants YOU to be his next success story.
His digital heavyweights are seeing quadruple-digit gains from digital assets. Just look at this post.
Join Nick Black's Digital Wealth Master Class on Friday to discover his next big targets.
If you're new to the world of digital assets - Nick's going to walk you through the whole process from start to finish.
You'll learn the ins and outs of what to buy and what to avoid and have all your questions answered.
He'll show you how he's increased his wealth by 6,230% since 2016 with digital assets... and have been reeling in gains like...
Even if you can't make it on Friday, be sure to sign up now so Nick can send you the video replay - plus five free reports to help take your investments to the next level.
You can't afford to wait on the sidelines any longer.
Go here and claim your seat for the Digital Wealth Master Class.
Stay Liquid,
Garrett
The post And Now Momentum Breaks Again appeared first on Midday Momentum.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.