They are coming right after my Range Rover line of 1041 here intraday (Range Rover is one of our Q3 Macro Themes that states simply that, while everyone runs around trying to call crashes – the only one we’ll see is the one to the upside versus consensus expectations).
Almost 6 weeks ago, after having the topside of my Range Rover target penetrated, I moved to 1041. That line of resistance has held up, until now.
Now, with the Buck Burning again to fresh YTD lows, the SP500 is making YTD highs. Can the REFLATION traders hold this line and close it here? We’ll have to see. As the data changes, I will – the data that matters most is embedded in closing prices, not intraday ones.
For now, the next line of resistance above my 1041 is 1049. Beyond 1049 will make this market finally overbought. Beyond that line will make this generational short squeeze, on a percentage basis, as large a move as we saw (peak-to-trough) in the 2007-2008 crash on the downside.
Immediate term TRADE support bumps up to 1018.