We’re making some progress.
As we noted yesterday, we were looking to take back 2,880 on the S&P 500 and we finished at 2,884 and our next goal is the strong bounce line at 2,910 – after which we can put this weakness behind us and get back to our rally – because nothing that happened last week to cause the sell-off matters this week, I guess…
Our bounce lines remain:
- Dow 25,000 is the mid-point and bounce lines are 25,550 (weak) and 26,100 (strong)
- S&P 2,850 is the mid-point and bounce lines are 2,880 (weak) and 2,910 (strong)
- Nasdaq 7,200 is the mid-point and bounce lines are 7,360 (weak) and 7,520 (strong)
- Russell 1,440 is the mid-point and bounce lines are 1,472 (weak) and 1,504 (strong)
We made good progress yesterday, flipping the Weak Bounce Line on the S&P green along with the Strong Bounce Line on the Nasdaq and the Russell is right on the Strong Bounce Line at 1,503 this morning, so we turn that black. That’s all we need to do to see if we are moving in a healthy or unhealthy direction.
Yesterday’s move up came courtesy of Chicago Fed Governor Charlie Evans who said: “As long as inflation continues to behave the way it has, I think we have capacity to pursue these accommodative stances in support of the economy and sustaining the expansion and maximum employment. There is a role for risk management, and you could take the view, as I have, that inflation…