The market action yesterday was what every bull fears:
-A month end “window dressing” turned into a curtain fire
-Market internals worsening
Add in the inept political elites looking to kick the debt ceiling down the road again and the formula for a 2019 or worse rout is building cause this December.
The 50 DMA has to hold this week and CONgress must act quickly or this sucker is going to roll over even harder with a quick test of the 200 DMA around the 4300 level. That would mean certain doom to all of the phony baloney good time dope smoking rock and rolling permabulls.
As of this morning at 5 a.m., futures are up over 300 points, just like Monday with commodities and crypto following suit. If the markets eek out only meager gains again today and there is widespread institutional selling into this “rally”, look out below because by Friday a weakened sentiment along with the threat of political ineptitude could create the conditions for potential capitulation.
And we can’t have the children who grew up to become Robin Hood casino gamblers that Wall Street just suckered into buying options and penny stocks scared out of the market now, can we?
Thus the markets had best get muddy like a happy pig and rally hard and broadly today with volume or before the week is out, this oink will go doink.