Well, here we are.
As expected, we got to our strong bounce lines on yesterday's pre-market rally but then we went nowhere and now we'll have to wait and see if we go somewhere for the rest of the week. After getting properly spanked by Wall Street for his latest China tweets, the President has been more conciliatory – other than his continued attacks on the Fed, where he is now demanding a 1% rate cut. That too may backfire as it will be impossible for Powell to please the market with even a 0.5% rate cut and expectations are now over 85% that the Fed will cut at the next meeting.
As you can see from our S&P 500 chart (SPY), we're at the Strong Bounce Line – which is the same line we've been using all month, predicting both the bottom and the top of the correction. As you can see, the 50-day moving average is just above at 2,945 and the S&P is at 2,920 this morning and MUST HOLD that bounce line at 2,910, which I think it should do into the Fed. Our other indexes are also right around their strong bounce lines:
- Dow 25,000 is the mid-point and bounce lines are 25,550 (weak) and 26,100 (strong)
- S&P 2,850 is the mid-point and bounce lines are 2,880 (weak) and 2,910 (strong)
- Nasdaq 7,200 is the mid-point and bounce lines are 7,360 (weak) and 7,520 (strong)
- Russell 1,440 is
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