This rally is not built to last- MSN Money

This rally is not built to last- MSN Money



Here is an interesting article about how the S&P 500 continues to creep higher when there is probably no reason for it other than people constantly adding to their 401K portfolios and choosing stocks more than bonds.  The S&P 500 chart shows a narrow consolidation range that is built on low volume.  The author also presented a chart concerning the percent of S&P 500 stocks above their 50-day average ($SPXA50R).  That stands at just 60% and it is in a downtrend.



In addition, bond yields are falling which means people are also heavily buying bonds while others are buying stocks.  The first quarter GDP is about to be revised to negative territory, market breadth of the advancing stocks of the NYSE is falling, and volatility is staying at record lows.  It would probably only take a little bit of bad news to send the stock market a lot lower.  I own a position in the Nasdaq leveraged short ETF, SQQQ, because I think we will have a correction soon.