The Pattern Unfolds
We believe that the market continues its topping process for the S&P Index.
Yesterdays rebound and todays gap higher and new all time highs sets up even more powerful scenarios.
We look for a couple of days trading within todays range and then a definitive move.
A gap higher out of today’s range , that holds, will set up a big move higher.
On the other hand, a gap lower out of today’s range, that holds, will set up a big move lower.
From a fundamental viewpoint the FED has created a monster. Industry that caters to the top 30 percent of the population is doing well. Industry that caters to the bottom 70 percent is doing poorly, more evidence that trickle down is a problem.