SPX was up an unremarkable .44% today, hardly a record-setting day. Yet, to The Powers That Be, it was the most important session so far of 2016, as SPX gapped up over a TL connecting the recent highs.
They’ve been working toward this day since Feb 11 — the day that USDJPY and CL bottomed out. From that day’s post USDJPY Finally Relents:
…look for an entry point there — keeping an eye on CL, USDJPY and NKD for signs of a turn. If it’s to happen, it’ll be because all three are screaming higher.
CL was up as much as 63% as of last week. NKD added 16.6% since Feb 12. And, hapless USDJPY has defended Feb 11’s lows four different times.
So, it’s no surprise that SPX is up 14.5% since then and, today, tagged the target we set back on Feb 22 [see: Cornered Bankers Resort to Ramping.]
Once the SMA50 [1954.05] is topped, the upside case shifts to the purple .618/SMA100 combo at 1999, followed by the white channel top and purple .786 at 2050 in late March. An alternate target is the .786 of the drop from 2134 to 2010 at 2065.
Here we are at 2065 in late March. The only real surprise is that so many investors still believe the “market” trades mostly on fundamentals.
P.S. Here’s your fundamentals…
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