From ZeroHedge: Although the S&P 500 recently ramped to new all-time highs, those gains are living on borrowed time, because oil’s failed recovery will bring stocks down with it.
The markets are beyond overbought and overstretched.
The S&P 500 has been trading within a 1% range for three weeks. This range finally broke out to move an incredible 0.22% higher.
Yes. 0.22%… less than half of one percentage point. This is what has got the bulls foaming at the mouth.
Meanwhile, Oil, which lead the rally from the February lows… has broken down completely.
Stocks are on borrowed time. The S&P 500 should retest 2,100 if not 2,050 in the near future.
The SPDR S&P 500 ETF Trust (NYSE:SPY) rose $0.32 (+0.15%) to $218.46 per share in premarket trading Monday. The largest ETF that tracks the benchmark S&P index has gained 7% since the start of 2016.
This article brought to you courtesy of ZeroHedge.