The key stock averages have broken key resistance levels, but they're also expensive and overbought at these levels.....Eventually, the fundamentals do matter.
The stock market continues to act quite well in January. However, in the end, the fundamentals still matter...and bear markets don't end at expensive levels. Therefore, investors need to be very careful in the weeks and months ahead.
The stock market cannot remain overvalued without artificially low interest rates and artificial liquidity. Thus, a soft landing will not be enough to prevent more weakness in the stock market. (Besides, a soft landing is still quite unlikely.)
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The major averages are bumping up against key resistance levels. If they're broken, it will be bullish near-term. However, without "free money" and "steroids" (QE), this rally is destined to fail.