S&P 500 after Momentum 10-day average z-score > 2.5
Last week, when momentum stocks suffered a massive loss and there was a huge shift from growth to value, there were indications that it could be a potential negative, but it hasn’t been consistent enough to be an imminent worry.
Those stocks fell further in the days ahead and have since rebounded. While they haven’t crashed, their volatility has increased, and as Business Insider notes, the momentum shift could be an ominous signal. The last two times we saw activity like this, they preceded recessions.
See the September 18 report for more.