March 2016

[admin]

Both Zacks (see previous entry) and USB are getting wet feet about the rising stock market:

"With the rally of the last few weeks and looking at our daily trend work, the SPX has reached its most overbought position since 2009!!" the analysts wrote in a note to clients Tuesday. "Together with significant non-confirmations in our medium-term momentum work, and trading in the time window of our late Q1/early Q2 top projection, we see the market vulnerable for a significant reversal this week, which we would see as the beginning of a tactical top building process and subsequent correction into deeper Q2." This is a reiteration of a call the two made last week, when they felt that the rally was too good to be true. While the forecast is not the UBS house view, the team does have a good track record, calling the coming downturn in stocks on December 5 and its eventually rebound on February 11.

UBS: Sell stocks now! - Business Insider

Quite frankly, we also think at least a pause and consolidation is in order.