Sunday, August 24, 2014

A Top Is Very Likely In

SGS Market Timer Status:   NEUTRAL 
as of close of 8/1/2014

Long Term Current and Past Portfolios
In Cash 

SPX set new all time highs on 7/3/2014, 7/24/2014 and 8/21/2014.  A more careful look at all 500 SPX components reveals that while the index itself was setting new all time highs, the number of its individual stock components setting new highs dramatically decreased:
  • On 7/3/2014, SPX printed 1985.59 while 92 out of 500 reached a new 52-week high
  • On 7/24/2014, SPX printed 1991.39 while 68 out of 500 reached a new 52-week high
  • On 8/21/2014, SPX printed 1994.76 while 47 out of 500 reached a new 52-week high 
The market has continued its rally on a narrow leadership.  It's hard to determine how long such a rally lasts, but its days are definitely numbered.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.