Last week the S&P 500 made new all-time highs. However, if we look under the surface, we see evidence that this herd is still pretty anemic.
Remember the S&P 500 is Cap-Weighted so the biggest stocks can push the index higher even if the majority of stocks are not that strong. And the reality is that we still have the majority of the US stock market in technical downtrends.
So, while it's great to see new all-time highs on the major indices, we must remember to look underneath the surface for signs of danger.
In today's video, we also show you what we look for in a technical set-up for a security to be included in our tactical models.
If you grasped the key concept of supply and demand from Econ 101, then you should be able to grasp how this applies to a stock or security trade.
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