A couple of nights ago, in a short post called It’s Quiet, I wrote, ” My spidey-sense is that it’s not going to be this painless. I am frankly stunned and how lackadaisical the market is being about this entire affair, yet as I look at the chart above, I simply don’t think it’s going to hang around at 14 forever with its thumbs in its pockets. Another shoe is bound to drop. “
Although “Spidey Sense” isn’t a widely-known technical indicator (not even in my cherished SlopeCharts), my intuition seems to have been correct. The shame of it is that we can’t behave like this is a normal market where we can do our analysis, get into our positions, set our stops, and move on with our lives. No, instead, we have to constantly be looking behind our backs from moronic amoral criminals like Kudlow and Mnuchin for their next effort to prop up this utter fabrication.
In particular, when I woke up this morning, I immediately noticed that the magical power of the number I have cited here endlessly – –2826 – – still holds sway. In the brief time I spent getting my systems up and running and starting this post, sure enough, BOING, it bounces right off it. That horizontal is as smooth, flat, and reliable as Kudlow’s cocaine mirror.
In case I wasn’t clear the first 300 times, that level is extraordinarily important. Break it with any kind of gusto, and it’s bombs away.
Maybe I’m just talking my book, but my Spidey Sense this time is that we’re going to see that level break. Yes, yes, the swine in D.C., our feckless leadership, will once again furiously back-pedal, promise, and hurl bromides in order to turn it around. It’ll happen, you can count on that. But I suspect we’re going to have one good lusty run to the downside before the man goes crawling on his knees back to Xi, trying to cut some kind of compromise.
And you want to know which gives me the most confidence of all? The fact that Elliott Wave, after all these years, is INSISTING that a quadruple-digit rally on the Dow Industrials is going to push the market to lifetime highs. It shocks me to the core, but after a decade of doomsday, that is seriously what it is print. So buckle up.