US technological sector, one of the most important sectors in US has turned bearish last Friday 5th April on our market sentiment indicator. This serves as a cautionary signal for us who are still very bullish about the market.
We shall see whether the US tech stocks this quarter declare better than expected results. Yesterday Alcoa did quite well beating earnings estimates. Do take note that tech sector tends to slowdown in their earnings following the powerful 4th quarter results in January.
For me now, I would prefer to be on the sidelines waiting for the consolidation to arrive. May consider shorting the US tech sector ETF, or short some tech stocks.