The Day After Tuesday

posted Dec 10, 2014, 10:28 AM by Katie Shook   [ updated Dec 10, 2014, 10:28 AM ]
Monday was down.  Then Tuesday was down… and back up.  But still down… compared with Monday.  And the internals of the indexes?  Up and Down.

Basically it was pretty messy.  But the takeaway is that the 2040 support area (consolidation around 2050) on the S&P500 appears to be holding.  Now it looks like a re-load to re-test the 2075 level again.  THEN do we finally see 2100?

I know there’s a lot of talk about China, Europe, Japan and the likelihood of more QE from Central Bankers or rate hikes domestically.  I think it’s a distraction from the ‘now.’  Now the rest of the world looks a lot more dangerous that US Equities.   And, even if the US markets are overvalued, they don’t yet appear waaaaay overvalued, which is what typically happens before a significant correction.

Make no mistake:  a correction will happen.  It’s when and how much that’s the stumper.  Until we hear otherwise though, I’d continue to stick with the theme that the SPX is hunting for 2100 and the Dow wants to be over 18,000 by year end.

ScreenHunter_05 Dec. 10 06.28

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