It's also the same place we were on December 21st, following our bounce lines at:
- Dow 36,000 to 34,200 has bounce lines of 34,560 (weak) and 34,920 (strong)
- S&P 4,700 to 4,465 has bounce lines of 4,512 (weak) and 4,559 (strong)
- Nasdaq 16,500 to 15,675 has bounce lines of 15,840 (weak) and 16,005 (strong)
- Russell 2,400 to 2,080 has bounce lines of 2,144 (weak) and 2,208 (strong)
Actually, the Nasdaq has improved from red to black as it's at 15,862, so too close to give it a color at the weak bounce line and we'll be watching the Nasdaq closely today as well as, of course, the 2,200 line on the Russell, which remains our best market indicator. Volume was back to low (74M on SPY) yesterday – so we're not putting a lot of faith in these levels after just one day. Yesterday Powell boosted the markets telling us he can beat inflation without harming the markets – he's MAGICAL!
Silly or not, that's what traders want to hear and a small number of them rushed in and bought up the indexes despite 1.3M Covid cases on Monday (30% more than the previous record) and despite the most inflation since the "Carter Disaster" of 1982 (a year after Reagan took office) and despeit the fact that our grocery stores now look like Russia in 1982:
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