MBO Issue 116 Special Update
With Fed’s Jackson Hole meeting coming up, it is time to review where the markets stand and what to do about it.
First, here is the latest market breadth analog says as of Aug 24, 2021 closing.
It is a long time since the analog model says anything bearish.
The problem, however, is that a melt up market can continue to melt up until all chasing and shorting activities are exhausted. It is especially true when retail players keep trying to short the market without understanding what they are fighting against. And that means there is no clear upper boundary for how much higher S&P will go. So what can we do about it?