Common thread among major market indexes. Their patterns are similar, producing a trend of descending peaks but ascending lows.

Today is the 22nd anniversary of the September 11th attacks. May we always remember and honor the civilians, firemen, police, first responders and military who lost their lives on that day. 

The stock market is at a technical crossroads, a test point of sorts. 

The latest survey by the American Association of Individual Investors shows that bearish consensus has fallen significantly, and it is now standing well below its historical norm around 31. 

The sharp and abrupt selloff that we’ve seen in some sectors and themes since mid-July can be interpreted in several ways. My take is… 

Referencing history, August didn’t deliver any real surprises for investors who were more inclined to be stock-picking focused, or more centered on sectors than themes, it wasn’t such a bad month. But those who were looking from a top-down perspective… 

I don’t think it’s a stretch to equate the stock market with a prize fighter who takes on contender after contender and wonks every one of them, and that’s what we’ve seen here in August. 

It should come as no great surprise that technical factors are quite mixed as we come to the end of August. This has been a very choppy, erratic and reactive month for stocks… 

Shortly after mid-July when the major market indices hit what were to be short-term peak levels, I cautioned that August could present seasonal and cyclical headwinds. 

The rally in the Nasdaq yesterday — the biggest one so far this month — was encouraging, but it didn’t pierce through the near-term resistance level.