Bulls and bears look to be in a state of jittery equilibrium, like two arm wrestlers unable to put the other down. The benefit of the doubt should go to the former, however, since the steep rally from December’s Marianas Trench has an unachieved Hidden Pivot target at 3095, basis the S&P 500 cash index. That’s an 8.4% trek from these levels, and if it is achieved with the power of the buying binge we saw as 2019 began, we could be there by late July.
A Jittery Standoff
- May 21, 2019, 5:40 am
The SPX/INDU are looking lower a lot lower. The ‘low of last week’ will and is a basic towards increase volatility, which at 1st when hit seems to be a ‘buy point’ (or what is called a spring).
It will break hard towards the downside, sending markets towards the 10% support level.
There is a very small possible because of the deep technical sell off that had taken place, the markets could easy slide to the Xmas low in a day or so, though I see that as a extreme more than complete a normal wave lower.
Over all, it is very much ‘quite’ possible that the bear market ‘longer term’ had begun at this last high point.
Have a great day today Rick.