Market participants will say a final prayer before the market gets flushed today.
We are again seeing normal 2-3 day and 5 day frequencies on the hourly chart of the ES 24 hour S&P futures. Those cycles just made concurrent highs in the premarket morning hours Now we could get a 2-3 day cycle low this morning, but if there’s no material bounce, or a weak one, as the lows are tested, the outlook for the rest of the day will be dire for the bulls. And bears, who have been forced to be reluctant shorts by the constant vicious whipsaws (you’re looking at him), may miss out on the next big move down.
The number to watch on the downside is 3960. There should be a rebound from there. If not, batten down the hatches. The first significant stopping point would probably be 3940, which is the bottom of a developing megaphone at the lows? Who ever heard of such a thing. Megaphones develop on the way up, sometimes as tops, and sometimes as consolidations. But on the way down? Not in my memory.
On the other hand, if the 3969 low holds, look for a rebound to 3999. Then we’ll see.
Meanwhile, the bond market had the benefit of a $48 billion T-bill paydown stuffing cash into institutional accounts. It will have no such support in the days ahead. In fact, the opposite. I speck a breakout in the 10 year yield above 4%, with no looking back. Here’s the hourly chart.
US Treasury Throws A Shocker to Reverse the Stock Market Outlook
For moron the markets, see:
- Gold’s Temperature Reaches Absolute Zero February 22, 2023
- Swing Trade Screen Picks – Ambiguity Central February 21, 2023
- Bears Challenge Bulls to A Duel – Here’s Who Gets Shot February 21, 2023
- You Can Now Follow the Diabolical Usual Suspects February 16, 2023
- One Gold Indicator Needs to Whipsaw or Will Signal a Secular Top February 14, 2023
- Swing Trade Screen Picks – Meat Grinder Prevails February 13, 2023
- How Bears Could Take Charge This Week February 13, 2023
- US Treasury Throws A Shocker to Reverse the Stock Market Outlook February 9, 2023
- Composite Liquidity Should Be Bearish, Here’s Why It’s Not Right Now January 26, 2023
- Withholding Taxes Fell Sharply in January February 3, 2023
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