Not only are dips being bought reflexively and with ostentatious zeal, those who are doing the buying are the same carnies who have in fact engineered the dips. Although Thursday morning’s dip went a little lower than I’d expected before the sleazeballs predictably turned things around, what we should have observed is that no one on Wall Street has any fear whatsoever that coronavirus will endanger the global economy. It is just a useful ‘story’ where they are concerned, and it is being employed to manipulate stocks lower whenever portfolio managers are in the mood for bargain hunting. They exhausted sellers around 5 a.m. on Thursday, and it was up…up…up for the rest of the day. Now, if and when short-covering decisively breaches the 3381.63 midpoint Hidden Pivot where the rally stalled, the 3414.75 target shown in the chart will be in play as a minimum upside objective for the near term. A pullback to the green line (3365.00) first would trip a ‘mechanical’ buy signal, but I am not enthusiastically recommending a play because the correction will not have come from our sweet spot.
