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Posted in Lee's Free Thinking

Just for Laughs 7/22/21

This is a syndicated repost courtesy of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Reposted with permission.

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

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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

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Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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