Have we gone past the highest point in the market?
Fundamentals aside, it would seem that currently we are moving into the later half of the formation of a market top - as seen from Wyckoffs key points.
Moving forward, the key indicators to look out for will be the signs of weakness [SOW] - which is a combination of a sharp decline in price and significant rise in volume, and eventually, the last point of supply which is typically a retracement of half or less of the SOW sell-off with light or diminishing volume.
Is it time to buy more? Nope.
Has the bear market took over? Nope.
We're still so early into the formation that from a technical standpoint, the trend has yet to be formed. As such, it will be foolish to make a call to buy or to short the market. What needs to be done should have already been done to avoid potential catastrophic losses on a portfolio level.
The next step is to observe - both fundamentally and technically - to decide a re-entry or exit point depending on the direction of price movements, volume, business earnings and economic performances.
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If you're simply unsure of what you should do - be it in the realm of your investments or your financial plans - I urge you to reach out to an advisor to guide you through this uncertain times. If you wish to receive first hand market information and actionable advise, you can reach out to me here.
Daniel is a Licensed Independent Financial Consultant with MAS and a certified Associate Wealth Planner, who specializes in retirement and investments planning. Find out more here.
This article is meant to be the opinion of the author and is for information purposes only.
This article should not be seen as a financial advice
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