As man, machine, casino patron and ma & pa rotate out of this (big tech & Semi) and into that (Pharma, Materials, Industrials) to varying degrees, we are 100% on plan. Our plan, for an SPX top-test has been in play for weeks and the negative news blitz last week only served to help. Again, here’s the real-time update from May 29 that kept us steady and gave us guidelines on the hysterics as SPX touched support.
Then earlier this week we noted a market still on track. Well, today it looks like it will end the week that way. It’s not hard to imagine a case of FOMO getting stimulated in sidelined players. The EWs are going to instruct about a big Wave 5 after all. Just as we tuned out the negative bullshit, we’ll have tune out that FOMO stimulus too; because the plan is intact and all it calls for at this time is test of the highs. We don’t even have that in the bag yet. Assuming it plays out, there is more work to do in looking beyond that with any sort of Swami-like conviction.
Anyway, here is SPX’s progress. Another fan line has been taken out and resistance is just overhead. We’ll update the various sectors (and rotation) in NFTRH 503 as the Fed readies its next rate hike next week. Dear Jerome (and Janet): My cash equivalents thank you. While paltry by historical standards, the income is adding up, month after month. At some point that is going to matter to this pig pictured here.
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