Thursday, March 23, 2017

The Public Is Still Too Afraid To Buy The Decline

US stocks’ short-term trend, a sideways consolidation since March 1st, remains a function of price, leverage, sentiment, and time. The Matrix warned a few weeks ago that sentiment (model) fell out of alignment with price and leverage. The resulting shift in trend energy transitioned the trend from long-term mark up (rally) to short-term cause building (consolidation) in early March. The public, still frightened by warnings of Armageddon from the same experts that have been forecasting crashes for months/years, remain pessimistic towards stocks. This defined by the sentiment model, not opinion.

Don’t expect the majority (public) to setup and buy the decline or sideways chop. They’ll do that only after the uptrend gets so hot that even a river boat gambler would be fearful of the odds. Time still places consolidation into April/May. Watch for realignment of sentiment.

Headline: US STOCKS-Wall St opens flat; all eyes on healthcare vote

March 23 (Reuters) - Wall Street was little changed in early trading on Thursday amid signs that President Donald Trump is struggling to get enough votes to pass a healthcare bill in Congress.

Trump was set to make a final push to secure the votes to begin dismantling Obamacare in the House of Representatives, with signs that enough Republicans might defect to jeopardize one of his top legislative priorities.



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