After yesterday’s drubbing in equity markets the belief that indeed the bull might be heading to the slaughterhouse is starting to take hold as a potential outcome with those grounded in reality. The good news for the bulls is that yesterday’s markets caused significant technical damage but was anything but a capitulation.
The S&P 500 tested the 100 day moving average but held:
The NASDAQ however got shellacked and is sending a warning to anyone that is listening, along with small caps, that inflation is real and will impact earnings in 2022:
Lastly, the institutional selling of Goldman Sachs stock yesterday is indicative that as the earnings are announced, any bounce up will be sold off to lock in profits and get out of anything liquid while the big money can.
The problem for markets today will not just be the strength of the bounce, but that President Dementia will be speaking during market hours. All it will take is another blunder to justify another leg downward so stay nimble if one decides that this is a good day to day trade this wild casino of a stock market.
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