Since the “markets” are still levitating beginning with a relentless gap up every day I thought it only fitting to make my thoughts clear on what I thought about all this for those that want to know. The first is: “Have you changed your mind about the health of the “markets” during this incesant rally?”
My answer: Once again, no. At least not yet and here’s why…
Below is the markets as of this writing using an updated chart of the S&P500™ that I’ve been referencing. To wit:
As you can see the “market” has poked its head out of that box I’ve been alluding to for weeks. However, from a technical view both in terms of volume and more, this “market” appears to be running on less than fumes. And that is where the catalyst for any real potential backsliding lies. i.e., one wrong data point – and things can go awry quickly. Emphasis on very.
Unless the “markets” vault higher soon and by soon I mean in days, not weeks, for whatever the reason (great earnings report, real trade deal news, etc., etc.) the potential to peter-out here and get back within that highlighted area is where the focus should be. For if it does, then goes back through approaching that blue line? Again, that’s where things have the potential for creating havoc.
On the flip side: should the “markets” vault higher and get back within those lines I highlighted above? The potential for a melt up for “New, never before seen in human history highs” and I would then call my original observation void. But until that happens, my original calls for caution are still as valid as I’ve stated, if not even more so.
As always, we shall see.
© 2019 Mark St.Cyr