IEI - Technically Speaking For The Week Of March 25-29: The Markets Are Feeling 'Toppy'
Professionally, I'm both a lawyer and an analyst, which means I suffer twice-over from "on the other hand"-ism. So, here's the conclusion.
- The possibility of strong equity markets advances is being diminished by a softer economic backdrop, the bond market rally, and underlying market technicals.
- However, I'm not seeing a cataclysmic sell-off. Instead, I think a general meandering with a modest downside possibility as the most likely scenario.
Fundamental Backdrop
Here are the main points in bullet point format with links.
- The EU is experiencing softer growth. The manufacturing PMI is signaling a contraction;