Menu Close

Just for Laughs 7/22/21

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Here’s a weekly chart of the S&P 500 over the past 15 months. Perfectly normal.

tvc_1d2211a173c54f8d4ad88ebffd47ba6c.png

When we look at the hourly bars, we almost get the idea that it’s a normal market that goes down as well as up.

tvc_90786838d4481cff47d0d45969c98f35.png

But we know that it’s not. The 5 day cycle projection now looks around 4405. The Dealers shook the tree on Friday and Monday to cover their shorts and pick up some low hanging fruit inventory for the current runup.

If they break through 4483, then the current pattern would have a conventional measured move target of 4540 or fight.

Fed MBS settlement week is now done. The Fed pumped $123 billion into dealer trading accounts. I suspect that most of that cash has been spent. The Treasury pumped in another $40 billion in T-bill paydowns on Tuesday, with another $8 billion on the way today. “Only” $8 billion.

The debt ceiling comes back on 7/31. Watch out for that. https://liquiditytrader.com/index.php/2021/07/19/heres-what-the-treasury-buying-stampede-really-means/

Meanwhile, as for the longer term stock market technical outlook – Here’s What Friday’s Selloff Means for Our Future

This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.comView original post. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

If you’re interested in following the photo journal of my European wanderings, including latest shots from Warsaw, a dynamic, un-Europe-like city, check out my Instagram page.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share