The Long Leg of the Tax Transfer Bill

Last week we started seeing the markets take into account the repercussions of the government giving away a lot of money to corporations and the wealthy.  The chickens are just starting to come home to roost. Interest rates are adjusting to the kind of money that will have to be raised at the same time as the FED needs to unload the last free lunch, the Bernanke QE programs.

Our F-3 Fracture Chart shows this vividly as the March 15, 2018 breakdown on the Fracture is being tested. We expect that the chart will now unfold with the factor having the greatest weight being a declining stock market. A first note point will be the 3 day average close on the S&P under the important January 26, 2018 close of 2873. The next important point will be the three day average closing below the 200 day average around 2760 and then the important breakdown point of the three day average close under 2083.

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