Today was far and away my best day of the year. The second-best day isn’t even in the same ZIP code. It was really all about what I said in my premium post last night, and it all transpired As God Intended ™. It may be the most inspired post I’ve ever written about the markets.
OK, great, so since our time machine’s busted, now what? Well, it’s not like we’re going to go down every day, but I truly think the bears have control of this market now. Here we see the NASDAQ Composite has completed an impressive top and even closed below the low of the October 10th “Chinese 145% tariffs” nonsense before Trump TACO’d himself.
The Dow, on the other hand, still has to work to do before it breaks major support (dashed green line). It’s getting reasonably close, though!
The NASDAQ 100 had a massive bearish engulfing pattern (like everything else today) but did NOT break support yet. It wouldn’t take much, but for now, support is still intact.
The S&P 100 index is getting close to its support as well, but even with today’s powerful selloff, support is not yet broken.
Happily, though, the S&P 500 has broken support, and weeks from now we may well look back at this and recognize the past six weeks of trading or so constituted an important reversal top.
I would also note that volatility (just like I predicted) is revving up mightily, and I think there’s a completely solid chance we’ll blast into the 30s before this year is over.
I started Thursday at 100% committed, peaked at 220%, and closed the day at 158%. I am absolutely delighted at what happened Thursday, since it affirmed what I was hoping all along: that we finally have a market whose personality has transformed for the foreseeable future.
