Mid-week market update: I noted on the weekend that the S&P 500 was at the end of a upper Bollinger Band ride, and such instances usually resolve in consolidation or pullbacks. In the past, the pullback usually ended at the 20 dma, which is roughly where the market is today. In other cases, market weakness continued until the index reached the lower BB.
Is the pullback over? To answer that question, I turn to the catalyst for market weakness. I woke up Tuesday morning to see a sea of red in equity market indices. The spark was attributable to a decline in the shares of go-go stock Palantir, which reported sales and earnings beats and guided expectations higher. Apparently, it wasn't enough. The market sold off because of Palantir's sky high valuation.
I found the explanation vaguely unsatisfying. Here is the real reason.
The full post can be found here.
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