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Rally Trend Busted 6/1/22


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They've broken the back of the rally, but haven't resumed the downtrend yet. The ES 24 hour S&P fugutures are in suspended animation, waiting for the other shoe to drop. They have set up a trading range of 4105 to 4169 on the hourly chart within which, all movement will be meaningless.

The bowel movements before the shitstorm, if you will.  

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Talk about confusing. At this point I am reading that this rally is a bear market rally and will reverse back down at some point. Then the contrarians say this could be the beginning of a new rally based on the following: These are coming from longstanding newsletters.

  • The buying surge over the past few sessions is reasonably comparable to March 2020.

  • Multi-day reversals like we've seen over the past week have consistently preceded further gains.

  • Other breadth indicators are showing historic surges.

  • Fewer stocks are in trouble, a welcome change from recent weeks.

 

 

 

 

 

Then you have the derivative of those contrarians saying we are going to see a blow off top and new highs.

All the while the Fed is about to reverse the IV drip and suck liquidity out of the markets.

Then you have the Yellen yesterday talking about how she did not expect any of this inflationary pressure.....Feels like we are flying by the seat of your pants

 
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2 hours ago, potatohead said:

Talk about confusing. At this point I am reading that this rally is a bear market rally and will reverse back down at some point. Then the contrarians say this could be the beginning of a new rally based on the following: These are coming from longstanding newsletters.

  • The buying surge over the past few sessions is reasonably comparable to March 2020.

     

  • Multi-day reversals like we've seen over the past week have consistently preceded further gains.

     

  • Other breadth indicators are showing historic surges.

     

  • Fewer stocks are in trouble, a welcome change from recent weeks.

     

 

 

 

 

 

Then you have the derivative of those contrarians saying we are going to see a blow off top and new highs.

All the while the Fed is about to reverse the IV drip and suck liquidity out of the markets.

Then you have the Yellen yesterday talking about how she did not expect any of this inflationary pressure.....Feels like we are flying by the seat of your pants

 

The Fed has a plan, and it will execute it until the market bitch slaps it again.

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