“The market is giving distinct signs that the previously strong rally is fading and that investors and speculators alike are paying greater attention to the headwinds that we have been discussing in these comments for the last few months.
Last week we pointed out how suddenly everything that was going up turned sharply down and that everything that was going down moved up. On a more gradual basis we note that stocks have made no progress now for almost three months.
The S&P 500 reached 1344 on February 18th and today closed virtually at the same level—1348. Since investors invariably try to buy on dips what they most recently missed, some bouncing around is likely as the market forms a top. Nevertheless we believe the groundwork for a big decline is now being set at a time when the vast majority is still bullish. The following sums up our concerns….”
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