I wouldn’t write off The Bull That Wouldn’t Die quite yet, since its institutional sponsors are still hard-wired to unlimited free money. But with the key reversal yesterday of our number one bellwether, AMZN, it seems likely that the broad averages will have to go at least somewhat lower in order to get a running start at new record highs. It is beyond my imagination to envision a news environment in which this could occur. However, we must still allow for it, since a bear market in stocks would set in motion a series of events that are unthinkable — that could only lead to a Second Great Depression. The Powers That Be have held the inevitable implosion at bay for nearly a decade, but this has required increasing amounts of stimulus that have by now lost their punch. It is a measure of the folly and delusion rampant in the financial world that Japan evidently thinks it can power its way out of the deflationary black hole with yet more stimulus. Even the benighted spinmeisters in the news media no longer seem to believe this is possible.
From a technical standpoint, the futures look bound for the 2090.25 target shown. There are at least a dozen ways to trade this, from both sides of the market. Stay tuned to the chat room if you care, since the E-Mini’s have been garnering considerable attention lately. As always, if so clear and important a Hidden Pivot support as 2090.25 fails easily, that would be signaling more than a mere squall ahead.