DrStool Posted May 10, 2022 Report Share Posted May 10, 2022 Yesterday, May 9, 2022, a day that will live in infamy, the stock market broke down from a major top that has been 10 months in the making. This will get everyone beared up for the longer term, as it should. However, we here at the Stool focus only on today and the next 24 hours. So, now that sport has been crushed, leaving no doubt in the minds of true chartists that we've been in a bear market since January, what happens today? Do we get a bounce?Well, turns out we've already had a rally of 65 points off the overnight low. And they're back to resistance. If they get through here, then this rally will persist for a while. Next stop 4050, 4060, or maybe even 4075. On the other hand, a rollover at 4035 would call for a test of 3965, and undoubtedly another rebound. The PPT and your tax dollars hard at work. I have an appointment with the goovernamont today. See you later! If you're serious about the underlying forces of supply and demand that drive the markets, join me! If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter. For the big picture: Buys Beat Shorts in This Week’s Swing Trade Screens May 9, 2022 Big Tops Lead to Big, Bad Bear Markets May 8, 2022 April Tax Collections Still Running Red Hot Mean That Fed Must Get Tighter May 4, 2022 Time to Catch Gold Knives May 3, 2022 The Fed is Tightening Into a Sheet Storm May 2, 2022 Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 Check out the spot of that reversal. Thing O' Beautay. Link to comment Share on other sites More sharing options...
potatohead Posted May 10, 2022 Report Share Posted May 10, 2022 amazing your not getting more page views here....is the market so bad that even bears are losing money? Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 To paraphrase Sally Field. People don't like me. They really really don't. 😁😁😁 Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 We have a double bottom test here with a slightly higher low. This should stick for another pop. At least that's what probability says based on past history. Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 Thing is, markets crash when expected bottoms fail. I think the number to watch here is 3945. If it drops below that, open parachute. Link to comment Share on other sites More sharing options...
Jimi Posted May 10, 2022 Report Share Posted May 10, 2022 Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 Similarly, 2.90 is the key on the 10 year. If that holds, uptrend still intact. If it doesn't, we're in an intermediate term counter trend reaction. That's thanks in part to massive paydowns in the T-bills, currently at $101 billion so far this month. looks like they're on a schedule of paying down $36 billion a week. With $951 billion in the Treasury's bank account, they can sustain this for 18 weeks before reaching their maintenance level target of $650 billion. Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 29 minutes ago, DrStool said: Thing is, markets crash when expected bottoms fail. I think the number to watch here is 3945. If it drops below that, open parachute. Strap on. Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 Bays open. Bombs away. Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 Give it a few below 3945. I'd say 3940-42, floodgates. Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 Out to dinner Link to comment Share on other sites More sharing options...
DrStool Posted May 10, 2022 Author Report Share Posted May 10, 2022 Don't look now, but the market is still making lower highs and lower lows. Big Tops Lead to Big, Bad Bear Markets Link to comment Share on other sites More sharing options...
Jorma Posted May 10, 2022 Report Share Posted May 10, 2022 They say the Devils Tower was a giant fast growing tree, in a Jack and the beanstalk sort of way, that a bear tried to climb to catch some kids, and left those claw marks. Seem about as plausible as a group of people can control the economy with monetary policy. Link to comment Share on other sites More sharing options...
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