If you logged into the CNBC website on Thursday morning, you might have seen the headline, “Wells Fargo says don’t buy this rally, fundamentals don’t support it.“ Investors relying solely on fundamentals and not knowing how to read market technicals may be at a disadvantage when market analysts issue such warnings. It makes you wonder when they might finally give the green light if the market remains bullish. Wells Fargo issued a similar warning back in November 2023. Whether analysts are right or wrong isn’t the point. The real point is that it’s important to have the right tools to anticipate a move, regardless of what fundamental analysts say. A Look At November 2023 Let’s look at a weekly chart of the S&P 500 index ($SPX). CHART 1. WEEKLY CHART OF THE S&P 500($SPX). Coming off a wave of selling, Wells Fargo warned not to buy into the recovery.Chart source:…
