Eyeing a hedge of a SPY/ IWM short through end of Feb when we historically get some weakness. From a seasonality and sentiment standpoint, feels like the market needs to rest a bit.
Per Almanac Trader, we see an early Feb peak typically then some movement downwards on average of 3% until the end of Feb. This chart dovetails pretty well into the inflated bullish sentiment right now. Long term I am still bullish but getting the sense retail investors are starting to feel more comfortable which is a warning sign.
Per Callum Thomas, there is a moderate negative divergence between price and sentiment. This isn't an actionable signal in itself but a warning to be on the lookout for a sell off.
We have negative divergence in RSI but this can go on for a while