Friday, February 16, 2024

SPX and COMPQ: As Good as Bears Could Hope

Last update's call for the 1/A low in SPX and COMPQ was good, and both have rallied up to their respective target zones.  COMPQ ran right to its 2/B label:

SPX ran a hair past its zone:

Interestingly, futures are down pretty solidly right now, presumably on the breaking news that cOmPUter mODels suggest that the Atlantic Ocean will ultimately close, which will devastate the East Coast tourist dollar and the local economies that depend on it.  Can't go to the beach if it's closed!

Also, inflation seems to be picking up again, so futures probably don't like that, either.  Core PPI was up 0.50% vs. the estimated 0.1% that was projected by people who have all their shopping done by servants.

Anyway, this is where bears wanted to be, and patient bears who waited for the suggested targets were rewarded with reasonable entries.  No guarantees that the market doesn't pull something funky, since, frankly, nothing surprises me from this nutzoid market anymore, but it's as promising a near-term setup as bears have seen in months, so we'll see if they can do anything with it.  Trade safe.

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