Last week, I discussed the registering of the monthly buy signals, which confirmed the bull market in the S&P 500 had resumed following the 2018 Fed/Trade induced sell off. Here is a snippet of our history in this regard:
“In April of 2018, I penned an article entitled ‘10-Reasons The Bull Market Ended,‘ in which we discussed the yield curve, slowing economic growth, valuations, volatility, and sentiment. Of course, 2018 turned out to be a tough year culminating in a 20% slide into the end of the year. Since then, we have daily reminders we are ‘close to a trade deal,’ and the Fed has completely reversed course on hiking rates and extracting liquidity. In July, we published “S&P 3300, The Bull Vs. Bear Case.”
While volatility and sentiment have reverted back to levels of more extreme complacency, the fundamental and economic backdrop has deteriorated further.