I was late to check on our market sentiment indicator recently because I was on holidays last week. But today when I checked, our indicator told us that both tech sector and S&P500 stocks have already turned bullish. Tech sector has turned bullish on 5th Dec while S&P 500 index on 11th Dec.
This is great news for the stock market. Mid term wise, be wary of shorting the stocks now. Do remember that tech sector is the first sector that bring US market to its knees in October. Good that now it has turned bullish. In one of the articles that we wrote last month, we mentioned that tech sector is the sector to watch out going into January.
It seems to follow according to our plan. Normally when one sector starts to change trend, other sectors like oil and gas, or financial sector, or healthcare will follow. Then the whole NYSE or Nasdaq stock exchange will follow.
Hence mid term wise, do take note that we are turning bullish and I predict that this bullishness has a chance to continue into next earnings season in January.
Do take note that our market sentiment indicator has been spot on this year. Hence any shorting position should be treated with caution now.