I think we can reach 2594 this week as the panic wave 3 plays out.
But first, this post needs a soundtrack:
The large gap down tonight is the target for the eventual wave 2, running through the week after opex. It also tags an important kissback of a trendline from the 1810 low. These channel re-tests are very important in my work going forward, massive, deadly-serious turning points.
|S&P 500 hourly|
But the Fed will leave the balance-sheet reduction schedule in place. That, and/or scary recessionary macro numbers will hit hard in January.
The first real Fed policy changes arrive at the March, 2019, meeting, when the S&P 500 is back at 1040. Everyone wants out. Real estate is already DEAD, especially after this week. Any suckers left out there, want to buy a house? Didn't think so.
Equities bottom later in the year around 525, trendline support from the 2002 and 2008 lows. The Fed will return to the well one more time with fresh QE and balance-sheet expansion.
This next wave of Fed desperation stimulus begins the decline and final fall of the $USD.