Down hard, but not as bad as global declines thus far.
News:
Technician Tom DeMark's latest market warning seems to have gone global. Asia had a rough night, and Europe is down over 2% across the board. On Bloomberg, he said that "a top in the S&P 500 would also be confirmed should the S&P 500 finish below 1,926.82 on Tuesday."
I don't use DeMark analysis but respect it tremendously. I'm just not feeling this one, however. Under the hood, it still looks corrective.
Cramer is a ball of bearish fire this morning. CNBC's David Faber just said Cramer "took it to a new level." Meanwhile, Bloomberg is running this stuff:
Risk Off mostly, but weak moves given the bearish tone in equities. AUD & CAD weaker. JPY slightly stronger, yet CHF weaker. USD stronger, again.
Bloomberg also running crap like this:
"A British exit from the European Union would be so devastating for the pound that 29 out of 34 economists in a Bloomberg survey see it sinking to $1.35 or below within a week of a vote to leave -- levels last seen in 1985."
I beg to differ. It would be devastating for the War on Sovereignty.
Let Britain be Britain. Let Germany be Germany. Let Greece default. Sovereignty is far more powerful than the globalist fantasy of centralized, unelected Supranational "power."
Treasuries:
Money moving into treasuries this morning. Yields lower.
Energy:
The latest decline in WTI crude (3.6% yet no new low) is causing people to freak out. It's a pathetic state of affairs in a debt economy when higher oil prices are needed to "create inflation." NG firm, only slightly lower.
Metals:
Gold up 1.8%, silver and platinum up as well. Copper and palladium still running counter.
S&P Outlook:
It appears a rising wedge could be in play if 1902.17 holds. (Oops, this scenario just got toasted at the open)
A more bullish potential also exits, which paradoxically could result from a deeper pullback.
And if Tom DeMark is correct, in Elliott terms the market may have just concluded a wave 4 bounce before a final sharp decline to around 1750 in a 5th and final wave.
That is why I was adding SPY puts and VIXY on the way up. Still looking for a spot to try some UPRO longs.
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