Well that didn't take long at all. If the 50 couldn't hold up, then maybe the 200 can provide a bit more of a bounce, at least a few days of sideways. From the pace of things, it looks like we are headed straight back to the origin of the blow-off top, the 2421 level on the S&P 500, late this month.
Any bounce from that level would have to be on hope for policy accommodation at the March FOMC. We closed right on channel support today, broken now with continued heavy selling AH. This red line becomes the target for a kissback rally into March.
Final cycle lows EOM May @1810 on the next major Bradley turn date. We'll see if the 2/25 and 3/9 dates mark the actual low and rally highs of the respective upcoming moves. The yield on the 13-week T-bill actually rose today, which means a rate hike for sure in March if this continues.
Manfred Zimmel's 1/29 Bradley nailed the top.
|Bradley turn dates, http://www.amanita.at|