Wednesday, October 20, 2021

SPX and TRAN: Real Estate Running Thin

Since last update, the market has continued its rally relentlessly, which means the ending diagonal possibility is off the table.  While not all the bear options are off the table yet, bears are beginning to run low on real estate.

Bigger picture, the long-term trend lines we looked at a while back have all continued to hold.

In conclusion, bears have been absent since the Fed minutes were released, leading to a relentless rally that could very well be a developing impulse wave, if bears don't show up again soon.  It seems the disconnect between the stock market and the real-world has already reached all-time highs, but we'll see if the all-time-high price point in SPX is able to stall this, or not, before determining if we have to eat crow.  Trade safe.

1 comment:

  1. Very reasonable analysis. When the facts change, we change our minds rather than dig a big, ugly hole.