Taking Stock of Technicals and Sentiment
With the historically weak month of February upon us, we take a closer look at market technicals and sentiment this week. Although equities are near all-time highs, longer-term technicals continue to look very strong. We will show how market breadth continues to suggest the path of least resistance for stocks is higher. Broad market sentiment is showing some signs of excessive optimism, which could act as a near-term contrarian warning sign. These are only near-term concerns though, as we still aren’t seeing the type of over-the-top sentiment seen at major market peaks.