Over the past few weeks, we've started to see a change in character in the general market. The S&P 500 has started to show signs that a pullback is likely. We've started to see momentum waver and distribution pile up.
The chart of QQQ shows even more distribution. This makes sense since stocks like NVDA and META are extremely extended and stocks like AAPL have started to turn over.
Sentiment has also reached levels where a pullback is likely. Notice that at times when we see a large amount of bulls with an absence of bears, the market usually comes in. Now, long-term I'm still extremely bullish for 2024. It just looks like the indexes may need some time to pull in towards their 50 or 200-day moving averages here. I actually would prefer this because a pullback would help wipe off some excess bullishness and help lay the foundation for the next uptrend. In fact, a pullback on the general market here may also allow me an opportunity to add to my SPY position without feeling like I bought at extended prices.
Bitcoin looks like it needs to pull in a little here to digest its' monster gains. I still believe 2024 will be "The Year Of Bitcoin" and that much higher prices are likely. I'll be monitoring it closely for an entry point where I can add once again to my position.
Risk right. Sit tight.
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Full Disclosure: I currently own Bitcoin, SPY, Solana, and Ethereum.
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