Big Picture S&P 500

We are currently managing a market correction. Period.

So when bearish things are written here that is the context. It is, has been and will be a major uptrend in stocks unless 1800 is taken out on the S&P 500. In that context the question now becomes to what level will it decline?

  • The monthly EMA 10, which supports it currently? That’s a minor blip, with no lateral support.
  • The EMA 20, which coincides with the 38% Fib retrace level, but also includes no lateral support?
  • Or maybe the area that includes the EMA 48 (green dotted line), which supported the 2015 market top (that wasn’t), the 62% Fib and below those markers, the major support formed by the 2015-2016 event?

If it drops to the support shelf at 2100-2200 it would feel like a bear market, especially since the media would be bullhorning BEAR MARKET! 24/7 due to a 20%+ decline. That would be a cyclical bear. I am currently viewing such a drop as a buying opportunity.

As it is, all of this angst in 2018 and we’re still on the EMA 10. That’s why we are managing the details closely in NFTRH. Ya gotta get from here to there before you can take advantage, and the short-term technicals and market indicators are what will tell the story. Old Turkey: “It’s a bull market, you know.”

spx

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