It was a nice try, but yesterday’s early morning ramp job fell apart in spectacular fashion. It’s ironic that the decline is being led by the same stocks which promised a moon shot.
As we discussed last week, FB’s drop below its SMA200 and .786 channel line was poison for the overall markets [see: Facebook Flops.]
So was the yield curve’s plunge through double support [see: Yield Curve – a Closer Look.]TSLA’s head on collision with reality was icing on the cake. TNX has finally complied with our forecast, plunging through horizontal support yesterday. By waiting, of course, its trend line of support doesn’t represent much of a move any more. As such, DXY has been able to put in a decent rally — aided, of course, by a healthy flow of funds fleeing equities.
Our downside targets remain in place. I’ve even added a worst case target that some might find surprising.
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