The Rescue Rally, Technical Market Points
With the action of the last two days we are basing our big cycle actions on the following S&P pivot point, support level, and objectives.Â The pivot point is 1237, support is 1185, first objective is 1289, second objective is 1341.Â
Gold has support at $ 800, pivot point at $850, resistance at $ 900.Â Plan on being a long-term buyer on selloffs to $ 800.Â For the moment we would just watch until that happens.
T-bonds which we have short at 122-15, haveÂ a pivot point at 118-26 and should find support in the low 115’s.
Oil is a $ 80 to $ 105 market for the time being, no reason to be involved now.
Don’t think about anything during this rescue rally other thanÂ moving into cash at either the first or second objective in your stock positions.Â The macro problem is only being papered over at the moment for political purposes. You probably want to enter open sell orders on all your stock positions at somewhere between 6 and 11 % above yesterdays close.Â How long with this rally last, we would guess anywhere between 3 days and 3 weeks, but no longer.
6:24 AM Â AM CDT