Wednesday Show Note

I was going to title this post “Be afraid, be very afraid.” however, I’m trying my damnedest not to sound like some “Chicken Little” character. I will tell you this, it’s getting harder by the day not to do or sound as just that, for the reasons are manifold.

So, with the above now said, let me make this point, once again, because it can’t be made forcefully enough…

These “markets” are acting far too technical as I’ve pointed out many times. And today, is another in the long list I’ve been pointing out. To wit:

(Chart Source)

The above is the S&P 500™ as of ~12:45pm EST using one minute increments. What I would like to point your attention to is the two circles I noted above. For the technical analysis challenged, all you need to know why I’m pointing them out is that they represent what are known as “text book examples” that one would use to illustrate ahead of time where one would presume “markets” would migrate to if their original hypotheses were correct. The above is, as of now, expressing precisely just that.

The question that is surely now being asked is: “Could it go higher, and still be expressing the same?” The answer is, yes, however, the next level up (e.g., .618) is also another level much like this one. But for now, let’s concentrate on just where we are currently and the way the “markets” appear to be running out of steam at precisely this one. Why?

Because if they were to fall back retracing this latest rise in short order (i.e., within a few days) it would open the door for an event also known for a door, called: a trap door.

That’s what I’m primarily focused on to the exclusion of almost all else. Again, I can hear you through my screens asking “Why?!”

Great question, and here’s that “why,” again, to wit:

Image
(Image Source)

What the above represents is that as of 10:10am EST this morning, the $120,000,000,000.00 (e.g.,$120Billion) of QE (quantitative easing) that has been injected into these markets every month since March of 2020 – has officially ended.

Or said differently – The credit card has now been officially pulled.

These “markets” are now officially on their own. What could possibly go wrong, right?

Right?

© 2022 Mark St.Cyr

Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.