The End Of The Beginning
We are seeing tepid signs of buying interest but it’s not exactly convincing – at least not thus far. We need to see a lot more mojo down here as we have reached the last line of defense – a slip up here and it’ll be one long cold winter for the bulls.
That drop below the lower 100-day Bollinger should have never happened – but it’s on the books now and there will be consequences. The only remaining level of support that’s keeping us from falling off the plate is the (very much untested) lower 25-week BB and thus far it seems to be holding. Let me be clear: A drop below 1850 will open the floodgates and we most likely find ourselves at 1750 or lower.
Bottom Line: The bulls have a vested interest in holding 1850 – for below it the abyss awaits. But whether or not we bounce here – this is BAD and most likely it’s not the end of the story. To quote good ole’ Winston:
“This is not the end, it is not even the beginning of the end, but it is perhaps the end of the beginning.”
Talking about falling off plate and all – here’s another recent turkey – crude. Wow – that’s a massive drop and it very much resembles what we’re seeing on the equites front. Just worse. We are now on death watch and I’m posting the LT chart for a reason. What we need here now (imagine Winston saying it) is last kiss goodbye maneuver, after which we will deploy our troops to deliver the final death knell. The Mole will be on the case here – that much you can bet on.
One measly setup waiting below for the subs – but it’s a good one 😉
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You have been briefed – now have fun but keep it frosty. See you guys later this afternoon.