Should you Really be Investing in the Stock Market Right Now?

Last week, I mentioned we might be witnessing a potential market top because of the 3 signs showing up. However, confirmation via a change of character bar and spike of supply did not appear.

As the S&P 500, Nasdaq and the Dow Jones are all at all time high while the earnings reports from Apple and Amazon disappointed investors, should you jump in the stock market right now?

The short answer is it depends and I will show you what you might want to consider before making a decision.

Market Recap

First, let’s take a look at S&P 500 futures (ES) and what’s happening last week.

The first sign of emerging supply was on 22 Oct, as highlighted in blue where there is increasing of volume without upside progress as S&P 500 was testing the previous all-time high resistance at 4550.

On 25 Oct (Monday), S&P 500 broke and close at all time high. However, increasing of supply hit on Tuesday and Wednesday as highlighted in orange where bearish price action was in sync with increasing of volume. This was the time where the bear can take initiative to overwhelm the bull.

Yet, there was no follow through and commitment to the downside. Just after a test of the axis line (where the…