Yesterday morning, we mentioned that Energy sector is going down. Yesterday it proves. We are inch perfect in our predictions. Our market sentiment indicator shows that Energy stocks are turning bearish fast. Look at how the Energy sector ETF, XLE is doing yesterday night. It is bringing the index down. Big Long Red Candle down. It will be the leading and first sector to go down this time.
Consider finding some energy stocks to short to hedge against your bullish position. And I encourage you to profit take some if you have bullish positions at hand.
With the VIX volatility up 30% 2 times in the last 4 sessions, I really think this is a sign that the market has become uncertain and panic seeping in, and be prepared the market might be going down soon. Btw, VIX is the study of how volatile the S&P 500 is, and it is normally inversely correlated with stock market.
But I also did mention, the real downwards momentum have not start yet. Remember, March , may be the critical month to watch!