Don't sell here unless you're really worried, says FedWatch Advisors' Ben Emons

Market Valuation and Sentiment - The market is currently experiencing high valuations, with a significant price-to-earnings (PE) ratio indicating overextension despite strong earnings outlooks [2][3] - There is a profit-taking movement occurring, suggesting that the market is correcting itself from an overvalued state, akin to "froth" being removed [2][5] - The market is perceived to be in a bubble formation, which may be bursting as valuations reach extreme levels [2][3] Economic Indicators and Federal Reserve Outlook - The market's focus on economic visibility is crucial, as the lack of data and uncertainty regarding government reopening affects investor sentiment [4][5] - The Federal Reserve is likely to hold interest rates in December, with concerns about lingering inflation influencing their decision [6][7] - Recent statements from Fed members indicate a cautious approach towards inflation, with a potential for forceful action if tariffs continue to impact prices [7]