The support line around the 1030 has been able to hold the market for now but the overall bias is that the market even sells off on good news recently and that might be the case until a substantial cleansing has taken place. Therefor we will need to brake below this support line and make the lows in the 970/80 region similar to the June /July correction. This just prepares the ground for the crash like events in Q1 and Q2 next year. The financials especially are overvalued as they are heading for the next stage of regulatory losses as the pressure is rising on DC to act. DC is acting in their interest though and postponing the regulations and doing a lot of noise camouflage but at some point before the midterm elections they better do act or the Reps will take over at least one house - after all it might not make a big difference though.SPX still heads for the 970/80 target before moving back up to the 1050 area followed by a retest of the mysterious 666 low.
1 comment:
This market is doing the opposite today. The line in the sand in the 50 day moving average. What happens if the SPX holds above the 50-day? Isn't 1,100 more likely to be reached before 980?
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