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In this morning’s Early Look, we signaled a warning that “if the SP500 breaks the 839 level, I have 804 as next support.” Now that line (see chart below) of support is 802 – as the math changes, I do.

Given that the US Dollar remains the dominant macro headwind for the US stock market, and that the US Dollar is up another +0.63% here at 86.03, this weakness shouldn’t be a surprise. When macro factors dominate and momentum lines break, this is what happens. This market trades on price momentum, not valuation.

Last Friday, everyone and their brother was talking about a “weekend bailout” pending. Today, I am hearing less and less of that… hope, after all, is not an investment process. Be patient. Be liquid. Be your own process. We have 11 months left in this year’s game – we’re just getting started.

Keith R. McCullough
CEO & Chief Investment Officer