Even though I knew it was coming, and I warned about it here and elsewhere for the past couple of years, I’m having difficulty processing the Trump coup attempt.
I’m still not sure that it has failed. I’m not at all confident that things are under control, and that the US will have a functioning government. There’s a large contingent of seditionists in the Republican Party, and despite the fact that they represent only 10% of the electorate, they have an armed and dangerous horde of madmen and idiots at their disposal. And they have collaborators and co-conspirators at the highest levels of many, if not most, police departments throughout the US.
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I remain very worried. I have always been, and remain deeply critical of US government policy, regardless of Administration, and the rampant corruption endemic in both political parties. But one thing I know for sure is that the US needs a functioning government, elected by the people, for us to have any chance to survive with a relative degree of freedom from oppression. The Rule of Law, as deeply flawed as it is, must prevail, or we are doomed.
The 5 day cycle projection is 3815-30. The low end of the range was hit in the overnight session. Hourly indicators have edged to the sell side, but remain high in positive territory, which means that the uptrend is still intact. A couple of trendlines come together at 3805 as of now – 6:45 AM ET. If they break, then we could see some downside.
I saw signs of a vicious short squeeze yesterday as stocks that were on sell signals reversed and got bought heavily and relentlessly. Once that burns out we should see a downdraft. But I’m not ready to place any bets on it yet.
On the other side of the coin, on intraday charts almost everything that was on buy signals looks extended and primed for a pullback. Only if they break 3795 is any significant downside likely.
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