Highlights
- Short-term divergences continue to build, adding to our conviction that aggressive buying is ill-advised while the market is overbought.
- We remain of the mind that a -7-10% setback (worst case) is in the cards in coming months, so our focus is on key support zones that must hold to prevent such potential weakness from spilling over into a more prolonged bear market.
- While we lean towards being near fully invested, due to our longer-term bullish view, we like using the currently overbought. . .
