Watch from the Sidelines

by | Dec 10, 2020 | Daily Trade Alert

It’s best to stay on the sidelines again today.

With tensions boiling over with China, uncertainty over the pandemic, and fears we may not see near-term stimulus, markets are on shaky ground. Technically, the Dow is overdue for a pullback here, as well. RSI, MACD, and Williams’ %R are all deep in overbought territory, with the index challenging double top resistance.

Unless we see clarity on plaguing issues, the Dow could push lower in the final months of the year. In addition, “Today was classic sector rotation and a resumption of the mean reversion trade that began modestly in September, and is continuing into the end of the year — and we believe, for much longer,” said David Bahnsen, chief investment officer at The Bahnsen Group, as quoted by CNBC.

Let’s be safe this morning, and wait to see where markets are heading next.

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