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Takeaway: Whatever Biden was laughing at last night, the market didn’t find it funny.

POSITIONS: Long Utilities (XLU), Short Industrials (XLI)

As time, prices, and now politics change, we do. Whatever Biden was laughing at last night, the market didn’t find it funny.

Across the core risk management durations in our model, here are the lines that matter to me most:

  1. Immediate-term TRADE resistance = 1446
  2. Intermediate-term TREND support = 1419

In other words, this market is finally broken from an immediate-term TRADE perspective – and it’s happening on fundamentals = #EarningsSlowing. What was immediate-term TRADE support (1) is now resistance, and there’s nothing but net all the way down to TREND support of 1419.

If/when we test 1419, the question remains – with Bernanke wasting all his bullets ahead of the Election, and Earnings Season in full swing, what is the next catalyst for the bulls who chased The Bernanke Top (SPX 1474 on September 14)?

Enjoy the weekend – and keep moving out there,

KM

Keith R. McCullough
Chief Executive Officer

Not Funny: SP500 Levels, Refreshed - SPX