Stock Market Expectations Still Building!

On April 18, 2012 the stock market’s expectations passed into “High Expectations” territory thereby triggering a bear market bias.

Although on a typical expectations cycle we would see the “Expectation Indicator” peak in “High expectations” then retreat immediately afterwards, but since this is the first “High Expectations” triggered since the long term bear market was marked in September of 2011, expectations are continuing to build to record highs.

As long as expectations are building, the stock market is unable to change direction. We should expect expectations to peak in the very near term future and then turn negative.

To learn how to create and track the “Expectations Indicator”, please read “The Art of Expectations“.

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