Our noisy weekly chart has chronicled the index since it took out the Bull Turnstile (i.e. it decided to take out the red dashed trend line) and made its upside close out to the Christmas Eve 2018 massacre. And now here is SPX once again, at those massacre lows.
The monthly (unfinished business?) chart has had two options for the correction (since well before the correction started, by the way) and the first one is just about in the books this morning. That is a 38% Fib retrace of the entire bull market. If I were to guess (in other words, make a prediction) I’d say the market can find its footing here and bounce back toward some resistance areas as casino patrons (led by the machines) think ‘hmmm, the Fed has cheapened money, after all…’ . Guessing further, hope might then wane again and a date with the 50% Fib, which is more solid support than the current level, could contain the next drop a few weeks or even months out.
Of course there are lots of other options out there but in the midst of this shit show going on today I thought I’d illustrate one of them.
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