Market Update

Today the market is reaching a key inflection point so I’ll post a very brief update here as a ‘head’s up’…

 

click image to enlarge

 

The chart above shows daily bars for the S&P 500 Futures with the three trading ranges from Stops and Targets shown as shaded rectangles.

In my last post some of you may have noticed two trend channels that I had drawn in… one had dashed green lines and the other had dashed red lines.

Those two channels represented my best guess at the time for the containment of future price action under two competing scenarios… the descending red channel was the bearish scenario–and the ascending green one bullish.

Today, price has finally advanced to touch the descending top rail of that red/bearish channel.  It has also filled the very important breakaway gap that was created back on 2/21/20 at 3317.50 when all hell broke loose to the downside after the Chinese intentionally released a weaponized worldwide virus in conjunction with an all-out propaganda campaign using every compromised asset they currently control.

 

<rant/>
We are seeing all-out warfare of a new kind playing out before our eyes.  This is likely an extinction-level event for the loser of this battle–so we are seeing everything they have got being deployed.  The Chinese are playing for keeps here (or at least trying to).  President Trump isn’t the kind of guy who telegraphs what he is doing tactically–but clearly, they absolutely hate the guy, and so I surmise that he must be doing something right to engender this type of desperate all-out attack. 

In my opinion, the Chinese weren’t quite ready to make this current bold play for world supremacy, as their military capabilities are not yet anywhere near the level needed to counteract America’s.  Their hand is being forced early by Trump’s economic policies and the recent reinvigoration of our military was something that China definitely did not want to see.  The contrived current antics by the leftists is being fueled by big money injections–but so far, is failing pathetically to create to the groundswell of ‘popular support’ the left had hoped for.  It is all backfiring miserably for the global socialists–and so all that remains is for the Trump administration to secure the sanctity of the vote counting process and if that can be done then these evil folks sowing death and misery are done.

It all probably looks pretty bleak on TV to those still watching, I am sure, but the shiny objects that many people are currently focused upon aren’t the really important things.  This is an all-out economic war… America versus China.  Freedom versus communism.  The effeminate, limp-wristed panty-fa dorks who are busy throwing temper tantrums and burning down their own neighborhoods are doing nothing but hastening their own imminent demise.  Those soy boy wimps and motley collection of societal misfits can and will be cleaned up in very short order once they have served their current purpose of driving maximum numbers of middle 20-percent voters away from their demonic lunacy. 

China is in real trouble here… as are the globalists once the masses find out what they have done and are still trying to do to us all.  America will ultimately be fine, but things may get more ugly before it finally gets better–but once it does get better, we are probably going to see the sort of transformative renaissance that comes after the wildfire passes through a forest and burns out the tangled underbrush and creates fertile soil for the sprouting of new life.  We are in the midst of the fire–but I am very much looking forward to seeing the amazing growth and rebirth that comes once China and the old world globalists who pull her strings have been dealt with.  What is happening must happen to effect the chance that is necessary.
</rant>

 

So, back to those trend channels… the downside breakaway gap from 2/21/20 at 3317.50 has now been filled and we are at the top of the red channel as I type–so head’s up here for a potential pullback.

First thing to watch for when a top comes is a combination of Top-Spotters and Range Top Pullback Alerts.  Those will be the early warning indicators.  IF we see the start of a reversal then the next sequence of events will be a cascading series of downside breakouts below the ST, then IT, and finally LT Stop/Reverse lines.  It will be unmistakable at Stops and Targets if/when it all begins.

On the other hand, if we get a sustained upside breakout through this descending bearish trend channel–then the bearish scenario will weaken dramatically and the next major target higher would become new all-time highs for the market and then the top rail of the ascending bullish channel much higher…

I suggest keeping a close eye on Stops and Targets new end-of-day reports for Range Envelope Crossovers at: https://stopsandtargets.com/members/signals/RangeSignals.php#

…and also on Stops and Targets Spotter Signals at: https://stopsandtargets.com/members/signals/bigpicture2.html

You will definitely know if/when a major top begins to form.

 

Also, I recommend carefully watching the Trend Leaders in all three timeframes for new clues:

Long-term: https://stopsandtargets.com/members/signals/trR3000LTbull.html

Intermediate: https://stopsandtargets.com/members/signals/trR3000ITbull.html

Short-term: https://stopsandtargets.com/members/signals/trR3000STbull.html

 

Key inflection points are coming here, so ‘head’s up’.

…my .02