The depression on the bubblevisions today was palpable.
What shocked me was that they didn’t have Tom Lee come on at 5 p.m. and lead the nation in a Gregorian Chant and Prayer for the carnage to end and Nvidia to resume it’s march to $200 for the good of the children. Or something.
In reality this was a nasty but not bull murderizing decline. The S&P 500 finally kissed the 50 day moving average but volume was not over the top. What I did notice technically and fundamentally was the following:
- No 10:1 down/up move on the Advance/Declines in equities, so this wasn’t a capitulation
- No 10:1 or higher down/up volume
- Still more new highs than new lows, although many were ETFs
- Bond markets sold off but orderly
- Gold didn’t drop $50 so no panic selling
- No mainstream media interruption in programming to indicate any panic
Thus leaving us with the charts to determine if this is the start of something or just a garden variety liquidation of holdings, aka, distribution as was discussed in these pages early this morning.
The S&P 500 now has a major lower gap within reach, but will it reach it this week?
If we breech 5350 this week, there is the possibility of some ugliness heading into month end but this author is skeptical of this happening; especially since more big tech earnings are upcoming.
Unfortunately for the super bulls, if the markets break below 5350, the FOMC disappoints, and there is no month end window dressing, as I stated in the chart above, the downward momentum can get ugly fast.
Real fast.
Got gold?
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