Monday, December 19, 2016

SPX Update: Please Do Not Adjust Your Television Set...

Friday saw traders everywhere vigorously scrubbing their screens with Windex in an attempt to erase the strange little "-" symbol that had appeared in front of their price quotes, while brokers' tech support lines were inundated with calls demanding to know why they had changed their color palettes from green to red.  Confusion quickly turned to panic as the S&P 500 closed down almost 4 points, sparking a rash of questions and rampant speculation as to whether the next bear market had finally begun.

The Fed held another secret meeting and vowed to henceforth raise interest rates ONLY if a 50%+ rally had occurred since the last rate hike, lest they spook the market and cause another Lehman-type event -- which could cause years worth of hard-earned bubble gains to vanish faster than you could say "Janet Yellen smells like Doritos."  (Although why anyone would even imply such a vicious rumor is completely beyond me.  Nevertheless, I challenge you to try NOT to think about this next time you're watching Yellen on TV.)

Meanwhile, due to the massive move of only 4 points, there is no material change to Friday's update, except to expand upon how a triangle may or may not be continuing to unfold here:

In conclusion, there's really nothing else to add from Friday's update.  Trade safe.

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