InvesTech’s proprietary Artificial Intelligence (AI) Index has fallen over -13% in the past 5 trading sessions, and our big-cap momentum Gorilla Index has tumbled -7.4%. In spite of universally bullish and euphoric forecasts by ALL the major brokerage firms entering 2025, the S&P 500 is now DOWN year-to-date. On a more comforting note, the largest position in our Model Fund Portfolio, ProShares S&P 500 Dividend Aristocrats ETF (NOBL), actually rose in value today AND over the past 5 days… and is also still up over 3% since Jan. 1.
The widely watched PCE (Personal Consumption Expenditures Price Index) is out early tomorrow morning and could send stocks gyrating wildly in either direction. However, if these current technical warning flags persist, and our proprietary Housing [Bubble] Bellwether Barometer continues falling in the days or weeks ahead, then Wall Street will likely be heading for major trouble.