FOMO the Next Catalyst for the S&P 500
The US equity markets continue marching forward in the face of media negativity. As a result, anxiety is building for the FOMO or Fear of Missing Out crowd. We view this sentiment as a bullish catalyst for the S&P 500.
Price action will most likely continue higher, as overhead supply dwindles. 161.8% Fibonacci extension is our upside target given current market conditions. Institutional sentiment is bullish. Breadth and participation confirm the rally is broad-based. Moreover, breakouts continue to track higher. Few are failing. Until these conditions change markedly, it is only logical that the markets should continue higher.
CYCLE UP – FOMO
The cycle upward started 2 weeks ago when the rate of change decelerated, producing a higher low. Now we see the cycle is gathering momentum. As the cycle continues, more traders and investors will join the party. FOMO usually kicks in as we near previous highs. At that point, we will be selling into strength as the cycle peaks.
Therefore, for the time being, we will add to our existing positions that are working. At the same time, we will eliminate and reduce the size of positions that are not moving with the markets.
“Let your winners run.”
We will be broadcasting live at 9:20 AM.
Happy trading,
Vinny
https://theclosingprint.com/CV_Blog/marketsmith-workflow-relative-strength/
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