There are a lot of open sell signals on the SPX & ES charts here. On SPX there is still a strong RSI 5 / NYMO sell signal that could reach target today on a weak close. If we see that weak close the possible RSI 14 sell signal brewing here would likely fix. SPX daily chart:
This past week, we experienced yet another horrendous terrorist attack in New York City. And, amazingly, just like what occurred after several other terrorist attacks that have been experienced over the last year, the market rallied right after the attack.
It has almost gotten to the point that people now expect the stock market to rally after a terrorist attack. Have we really become this warped in our thinking? Must we hold fast to ridiculous notions that news is what drives the stock market to the point that we have to resign ourselves to believing that the market will rally “because” of a terrorist attack? Do you not see how ridiculous these perspectives really are?
Yet, if the market dropped after a terrorist attack, there is no question in my mind that every analyst and their mother would be absolutely certain that the market dropped specifically due to the terrorist attack. Every article the next day would have been pointing to the attack being the definitive “cause” of the market drop. And, if I then challenged this false exogenous causation theory, the response I would receive is “don’t you believe your eyes?” Yet, not a single analyst dares to suggest that the markets are rallying because of news of terrorist attacks despite seeing many instances of this occurring over the last two years. Do, they not believe their eyes? (more…)
We were asked a question about a correlation there, and I remarked that I don’t think most correlations are worth much. If you think USD is going down and therefore gold should go up, then it’s best to cut out the middleman and just short USD. That’s not to say however that there aren’t some striking correlations around.
As part of her ongoing campaign to make me feel old and decrepit my daughter has found herself a job, and while she was going to that job on Saturday morning she was astonished to find a group of enthusiastic Flat Earthers sharing the … um …. flat news in the city centre. It appears that Chester is a major centre for these hardcore traditionalists, meaning that there appear to be at least five of them, and they have a website with reasonably grammatical sentences and so on here. It’s certainly an interesting read and they seem very passionate about their beliefs. (more…)
As I sit here on Halloween night (yes, this show was pre-recorded), waiting to dole out candy to the kids of the neighborhood, I thought I’d thumb through a few my-God-when-will-they-stop-climbing index charts. So here goes………
In the year since Trump was elected, the Dow has climbed nearly six THOUSAND points. What’s surprising is that not once has Trump ever mentioned the strength of equity markets during his tenure. He’s been too focused on the job at hand, and doing it superbly. And no matter what your political point of view, you’ve got to respect that.
Are the equity indices topping out here or not? I think yes, though likely just for a retracement before higher highs. SPX is retesting good trendline resistance, is on a strong daily RSI 5 / NYMO sell signal, and a daily RSI 14 sell signal is now brewing as well. Another retest of the all time high would establish possible nested double tops. Maybe. SPX daily chart: