Stocks look ripe for a pullback
I have been bullish on stocks and risk assets since the emotional knee-jerk reaction to the US election. It has been a good run but the hourly S&P 500 chart now looks ready for a pullback.
The chart looks like it has formed, or is in the process of forming a head and shoulders top. The measured target is relatively mild, down to 1400/05 but with the euro stuffed at 1.31 and commodity currencies overbought, the stars are aligned.