Yesterday’s forecast worked out reasonably well. From the member section:
In the meantime, I can easily imagine a pseudo-breakout that reaches the white .786 or .886 (yellow dot) into the end of the week.
The 26-pt spike took SPX to 2126.65, less than one point away from our yellow dot at the .886 Fib — close enough for government work, which is pretty much what it was.
The mainstream media consensus was that the factors which produced the single biggest opening minute ramp job since 2011 [per Eric Hunsader at Nanex, see HERE] consisted of mixed economic news and lower-than-expected inflation that would cause the Fed to hesitate in raising rates later this year.
This, on the same day that the IMF floated the idea that central banks will need to act as the buyers of last resort the next time “markets” crash — which, of course, is exactly what will happen if investors ever get the sense that the central bank intervention (which drove prices to unsustainable levels in the first place) is waning.
While we’ll never tire of nailing our forecasts, we yearn for the days when something other than central bank intervention and joined-at-the-hip algorithmic HFT ramp jobs determined stock prices.
On to today’s forecast.
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