The December settlement was decisive, with the SPX back to m/t bearish. Whilst the mainstream cheerleaders and many of the ‘smart guys’ are touting yet another floor, the market appears highly prone to further downside.
Below the Oct’2021 low of 3491, next price magnet is psy’3K. Even 3000 wouldn’t qualify as ‘panic and capitulation’. For that, we’ll arguably need a test of the March 2020 low of 2191. I’d accept that is a very long way down, but if you consider a looming recession, and at least one or two ‘wild cards’ playing out, then 2K really isn’t that wild a scenario.
For now, popcorn is still available in the shops. We’re arguably going to need a considerable amount for the ‘big show’.
Yours… charts 24/7/365
