Take some profits as several indices test upside targets
Tactical indicator risk heading into weaker February seasonality suggests taking some profits, or other defensive measures, as several market indices achieve upside counts projected by the post-2020. Election breakouts. TheS&P 500 (SPX)tested the upside target at 3830-3885 for the bullish triangle that we highlighted heading into the US Presidential Election. The Russell 2000 (RTY) achieved its first upside target from its post-election breakout at 2160. The NASDAQ 100 (NDX) moved up to13,433 vs its bullish triangle count at 13,500-13,630. MSCI Emerging Markets (MXEF) tested its first upside count at 1395 after a 13-year secular bull market breakout in December.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
