Wow, what a nice morning! And what an incredible contrast to a week ago, when all but three bears on planet earth had been massacred. Before the market opening this morning, I was wondering if the sell-off was done for now, since futures were briefly refusing to break support (see the NASDAQ below, in the portion I’ve highlighted). The market opened, it started to recovery, and then……..barf-o-matic:
A longer-term view of the /NQ shows the importance of that red line: it is one of the long-term Fibonacci retracement levels. So the boys who were gobbling up stocks on March 29th are feeling some pain. Good. Couldn’t happen to a nicer bunch.
The S&P 500 futures are also causing some harm to our criminal bullish colleagues. I mean, let’s face it. Who wants to live in a world where Cathie Wood is right?
Below is a chart of the small cap futures. The two arrows mark the points where a meaningful bullish breakout took place and then failed. Even better, the inverted head and shoulders pattern has been laid waste. The pattern is dead now.
And while all this is going on, the bond market is falling to pieces. Of course, what this means is that in a world absolutely choking to death on debt (the most conservative United States debt figure is well above $30 trillion, and the more realistic figure is a large multiple of that) and will be dealing with exploding interest rates. Calamity is at hand.
Boil it all down, and the bought-and-paid-for bullish shills on Wall Street……
