Less than a week ago, we penned an update on COMP that was aptly entitled COMP Signals More Pain Ahead accompanied by the following chart. COMP complied yesterday, racing past our initial downside target to tag the next one at 13,213.50 before a massive bounce back to the .618 Fib. Is it safe to wade … continue reading →
Another overnight bounce, another head fake… continued for members… … continue reading →
A little over a week ago, COMP made a hard bounce off its 200-DMA, gapping much higher the following day. Yesterday, it plunged below its 200-DMA and closed there – not a good sign for the bulls. continued for members… … continue reading →
In our last update on the NASDAQ Composite [see: Nov 4 Update] we called a top and forecast a drop to the 200-day moving average, then at 14,181. If this channel holds, then the push past the 3.618 will reverse itself and the index would be susceptible to significant downside. I suspect COMP is going … continue reading →
Algos are eyeing new all-time highs for the third session in a row, a combination of low volume… …and VIX’s continuing flirtation with its 200-DMA. continued for members… … continue reading →
VIX tagged our 34.84 target on Friday – an important breakout in risk – before tumbling back into the safe zone. With other factors holding their ground and equities’ 100-DMAs still untagged, it’s not at all clear that the worst is over. continued for members… … continue reading →
We’ve been keeping an eye on COMP lately, as it has often been a solid indicator of froth in the markets. It recently reached our next upside target of 15,667, continuing up to today’s high of 15,966. The gains are especially noteworthy, as just 5 weeks ago COMP completed a very bearish H&S Pattern that … continue reading →
It comes as no surprise that PPI confirmed yesterday’s hot CPI print, coming in at a whopping 6.2%. We’ve been beating the inflation drum for so long, it feels a bit anticlimactic to acknowledge that it’s finally here and even slightly greater than we anticipated. As regular readers well know, I expected central bankers to … continue reading →
ES is now off 9.3% from its recent top (-7.8% from our Correction Warning), nailing our 3253 target overnight. The decline has broadened from the overpriced tech stocks to include banks, energy and cyclicals. The factors we’ve been watching for the past three weeks are all bearish now, and bulls are starting to acknowledge the … continue reading →
Maybe the Fed had it right, leaving the door open to higher inflation. Though August headline PPI came in slightly higher than expected at 0.3% vs 0.2%, core PPI rose 0.4% versus 0.2% expected. S&P futures sold off 8 points on the news, but the algos had other ideas. As is often the case, “someone” … continue reading →