I have been seeing/hearing a lot of “technical” notes/noise today. What that generally means is that people are in trouble, looking for a lifeline. So, be patient … and you’ll get your price.
In this morning’s Early Look, I issued 2 levels of immediate term TRADE support (801 and 760). Since that dotted red line in the chart below was broken to the downside (801), I have done nothing but sell. I think you’re going to get paid to wait for the 755-763 range that I have outlined in green below. That’s my new buy/cover range in what is turning into a very trade-able range bound market.
The US Dollar is up again today – that’s bad for the US stock market. The USD runs into immediate term resistance at 86.46, and is bumping up against the 86 line here intraday. If I see a VIX over 47, the USD pushing up at 86.50, and the SP500 at 760, you can proactively predict what I’ll be doing – buying/covering.
This is a Bear Market, and it should be proactively managed accordingly.
Keith R. McCullough
CEO & Chief Investment Officer