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A Chief Market Technician at BTIG, sees the ongoing relief rally in stocks nearing an exhaustion point.
The strategist took note of a c10% rally off recent lows and urged clients to cut risk exposure above the 4,000 handle in the S&P 500.
“We are still in the confines of a bear market,” he warned in a client note.
“The paradox here is that while bulls want to see improving breadth, the last two times we saw this amount of 4-week highs it signaled an exhaustion of the rally. Will it be different this time?” he added.
The strategist also reflected on the S&P 500’s historical performance in August, which is the worst month for the benchmark index (-0.39%).
“Don’t get fooled again. Meet the new boss, same as the old boss,” he concluded.
