The S&P 500 Index (and the SPY) broke above their All-Time High (ATH) last week (graph below). From here, we can expect more upside; but this market is now way overbought by just a handful of high tech stocks like the so-called FAANNG (Facebook, Apple, Amazon, Nevida, NetFlex, Google), Microsoft, TESLA, and 10-20 others. The markets are in a situation where a relative few stocks in the indices (less than 20%) are valued above all of the other 80% combined. One day, investors will realize that this move upward has run out of steam, and a pull-back (or even a correction) will happen soon thereafter. When? Well we need to rely on MIPS to tell us when we should remain Long and when to "Get Out".
Paul Distefano, PhD
Founder / Lead Developer
MIPS Timing Systems, LLC
Houston, TX
281-251-MIPS(6477)