MM Weekly Outlook: Sharp Drop Alert
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It was mentioned that sentiment for this week reflected a sense of upheaval or things "falling apart." The news is full of pictures of California on fire and major winter storms. The markets are reflecting this in their own way.
Sentiment for the coming week reflects a focus on government, courts, and /or legal matters. People may be feeling or seen expressing desires for balance or fairness. The flat sentiment line on the weekly MMI vs. S&P chart with the market still overbought per sentiment generates a "Sharp Drop Alert" through January 27. This is not a call to short and does not mean the market is expected to drop directly from here. It means that there is an elevated risk of a sharp drop during the entire period of the alert.
