Last Wednesday, January 18th, was like a cool drink in a horrid desert. Today, a week later, may be exactly the same. This so-called “market” has been raging higher since January 6th with almost no down-tick in sight. Mornings like this are a welcome relief, particularly since the explosive rally driven by Microsoft (see red box) was smeared off the face of the Earth, Epstein-style.
It makes sense, too, because the bear-hate had truly reached an “11“. Even Northman, who at one point in ancient history was a virtually unknown visitor here on Slope before he got famous and also a wild-eyed permabear like myself but has since changed teams), sent out the following taunting tweet yesterday shortly after the close. Let’s just say it didn’t age too well. (I’ve been guilty of this same sin many times, but in the opposite direction).
Once Microsoft announced guidance, the NQ was slip-sliding away all night long. How glorious and unfamiliar it feels to see red slathered all other the screen.
Yet no victory lap is in order. We are at a CRUCIAL level of support right now, since we have perfectly fallen to the 50% Fibonacci level. Indeed, from the time I started typing this post to this very moment, the /NQ came within PENNIES of this level and immediately found strength. So I cannot emphasize enough how crucial this level is today.