The problem is, visiting the 200 DMA on the S&P 500 will have us break through a key support channel, a trendline from the 1810 low through the Trump election low. This is a very big deal.
That made me think, What if the Fed actually keeps their word, and raises rates three more times this year? They have given us plenty of warning, so why shouldn't they follow through on their promise? After all, it's on Trump's watch, and he foolishly adopted the market rally as a sign of his Mandate from Heaven.
So fuck it, how will he like it when the $VIX is over 40? He asked for it. And he would get it, as rate hikes, in June, again in September, and lastly, in December.
By then the damage will have been done, to bring out the specter of deflation, and a test of 666 on the S&P in 2018.
An ominous wedge pattern on $AMZN since early 2015 looks complete, with the stock starting to break out of a really tight wedge at its peak.
This channel is brutal and suggests that the company may have serious decisions facing it next year. That's all I will say about them for now.
|$JWN channel of Doom|