Quite the interesting stock market environment we find ourselves in lately, is it not? The data is bullish, the so-called recovery appears to be in full swing (the operative word being “appears”) and yet the S&P 500 has broken under critical support to post a new 7-month low. The topping formation we’ve been discussing at The Sovereign Strategist for months looks to be confirmed, the “mini-bull” market hasn’t seen new highs in seemingly forever, and the light is now green for sharply lower stock prices in months to come.
Hey man! What gives? Isn’t this what the bulls have been waiting for? How can stocks be acting so cruddy when everything seems to be going so well? “Interest rates, man! They’re gonna’ raise ‘em. Not good for stocks.”