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Today is one of those days where there is a whole lot of nothing to do. My Partner, Rebecca Runkle, labeled it “The Calm Before The Storm” in her Technology note this morning, and that is exactly what this feels like.

 

All the while, the most important move today is the US Dollar breaking down through what I have as intermediate TREND line support. With the USD Index down -1.1% on its lows for the day, the SP500 is threatening to go green on the day. REFLATION remains a powerful force – one that remains somewhat misunderstood.

 

With today’s recovery from the opening lows, we have ourselves higher lows – this is, of course, another bullish indicator. I see no upside resistance until the dotted red line in the chart below at 868.

 

There is a very short term momentum line that is baking itself into this short squeeze cake at 830 SPX (dotted green line), and underneath that remains Squeezy The Shark, who is challenging anyone in the short selling community to press shorts on the way down to 821.

 

Keith R. McCullough
Chief Executive Officer

Squeezy The Shark: SP500 Levels, Refreshed...  - SPX