The video in this report is only accessible to members
The video in this report is only accessible to members

Calm before the storm?   SPX and most major indices seem to have stalled out to the downside ahead of Thursday’s CPI reading which is considered by many to be the most important economic report this week.  Volume was compressed and Defensive groups like Utilities and Real Estate showed extreme underperformance, continuing a recent trend over the past week.  Overall, as has been discussed, technical factors other than price argue that lows are close at hand.  These are largely based on momentum, breadth, sentiment, seasonality, cycles and sector rotation.  However, selling in Technology has kept a lid on strength in Equity indices, and the specific lack of any real rebound makes it difficult to have any conviction that trends are turning higher right away.  Therefore the “proof is in the pudding” so to speak.  Markets are certainly very close to turning up and could very well start this Thursday on a better than expected CPI reading. 

The video in this report is only accessible to members
However, one cannot rule out a “final” plunge down to near SPX-3500, but I anticipate any move should prove very short-lived and then reverse to rally back to 3800-50 in short order.  Overall, the risk/reward definitely favors...

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