The S&P 500 saw early resistance against selling pressure during the regular trading session, indicating a potential struggle for bullish momentum. Despite a predicted correction at the beginning of the week, the market’s ability to rebound was met with concerns about the strength of bullish sentiment. While there were initial signs of recovery, the lack of broader follow-through, particularly concerning NVDA upgrades, raised short-term worries.
In summary, considering the risk-reward perspective, it’s not always necessary to maintain long positions. Some investors may consider gradually entering short positions, especially in weaker sectors.
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