I don't have much that's new to say as I've said it all since Thanksgiving, when I warned that Omicron, Labor Unrest and Inflation were brewing a toxic combination, saying:
We're watching the Russell 2,000 closely this week as that index is down 10% from the highs and back to where it's been flat-lining all year. 2,200 is the line to watch and below that, there is not much support all the way back to 1,500, which would be a 33% correction from here – very unpleasant.
So, if the Russell breaks, look for the other indexes, which are only about 2.5% off their highs, to begin catching up and that could get very ugly, very fast and that means we need to be very sensitive to signs of worsening news as a warning to add more hedges. We went over the levels to watch on each of the indexes in yesterday's Live Member Chat Room.
If we keep getting these anemic earnings reports, investors are going to start questioning the valuations that are being asked – even…
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