Personally, I feel a little weird playing chicken (or musical chairs) in being long this market while using gold and silver stocks as a balance. First, because I am expecting the market to close out the Christmas Eve massacre and trap many a momo and FOMO at some point in the coming weeks. Second, because this morning at least, gold and silver pulled back along with stocks after Trump pump-tweeted.
But anyway, steady as she goes I guess until we get an event. An event like a jaw dropping upside blow off that feels sort of like the inverse of Christmas Eve 2018 or like some broken support areas.
As for this morning’s reversal in pre-market, all it did really was let the market avoid gapping up on hype. The 30 minute chart shows the first area SPX must violate in order to start raising short-term red flags (and possibly a checkered flag for the finish line).
Our (NFTRH’s) lower target has been 3200, which is essentially in. But the question is whether or not it is going to go for the hysterical upside target, as also laid out in NFTRH 579 and this post. That would require the VIX falling through the floor, to the sub-floor per this weekly chart that has kicked off the NFTRH Market Sentiment segment over the last many months.
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