Is wave 1 down finished? If so the .618 retrace is at 3187 this week, if we can break above the initial down channel. This makes for a tidy 5 waves down to the lower bound of the Jaws of Death megaphone at 2107 into the March FOMC.
|5 perfect fibby waves down to 2107|
We retraced the dumb rally from October to within a single point on the S&P 500. That low needs to hold for a last ditch effort of denial.
|retrace of terminal overthrow rally since October|
The 13-week Treasury yield is telling you today that the Fed will cut at least 50 bps, maybe more, or some policy fun. This will only buy us a B-wave .382 retrace into EOQ1.
Breaking down the lower bound of the giant megaphone top means that free-fall is imminent again and SPY 100 puts will pay. Here is how A-B would pair with a C from 2008, targeting a 500-ish destination.
|ABC with C the 2008 tape|
What happens to cities like Vancouver, BC? "So what exactly would you say you do here?"
At least some high school kids got to drive Lamborghinis. That's got to count for something.