It was a disappointing, holiday-shortened week for the S&P 500 with the indexes closing in the red every single day. That said, all four losses only added up to a measly -0.7% decline and the index remains within 1% of all-time highs.
If this is the best bears can manage, our near-term prospects look pretty good. As I’ve been saying for a while, if this market was grossly overbought and vulnerable, the collapse would have happened by now.
Remember, market crashes are breathtakingly quick and if you hesitate, even for a moment, you get run over. Four down days that don’t even add up to 1% are many things, but breathtaking is not one of them.
Everyone loves to warn of complacent markets, but the important thing cynics fail to mention is just how long complacency lasts before the fall.
By definition, weak markets do not keep setting record highs, and by that measure, this is most definitely not a weak market.
Everything will come crashing down at some point because it always does. But lucky for us, this is not that point.
There is nothing to do here other than keep holding for higher prices and continue raising our trailing stops.
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