Big Move Coming? Stock Market at Major Inflection Point
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In our August 7, 2023 Market Update, Stock Market Weakness Likely, I mentioned the market was at the top of its uptrending channel and was likely to correct to the lower half of that channel. Here we are two months later and the S&P 500 is sitting on the trendline that defines the lower end of that channel.
The index sitting on this trendline could be a good entry point or it could be the beginning of a major correction if the index falls decisively below that line.
I believe we are about to see a strong move in one direction or the other. If it is down, watch out below. 
SPY-Daily Chart
Client Account Update
Client accounts are overallocated in Energy and Commodity stocks. Those long positions have been heavily hedged with Index Short Funds. That allocation has worked well over the last couple of months even though the S&P 500 is down over 6% from its peak.
