The stock market is currently in a holding pattern after a nine-day selloff via an A-B-C wave structure that produced a temporary high on August 8th. The current 4-year cycle that started in February 2016 has been nothing but amazingly strong. During the nine-day selloff some leadership stocks such as Alibaba and Visa even made all time highs. Alibaba and Visa are among those most favorite stocks owned by the institutional investors. Despite the strength, we do see the cracks in the market internals. The sideways to down market will be with us for the next 3-5 weeks.
We advise our subscribers not to open new positions at the currently levels. There will be opportunities to get back in the market at much better valuations.