The Market Players Don’t Get It, YET

The Market is headed much lower..

The market has put some time in recently pivoting around the S&P 2689 price swing level.  Now we are seeing a push through that area, and yet market players are talking about where the bottom will be.  In our opinion that is not the subject at this point, the real subject is how to protect yourself as we are headed to much lower levels after Thanksgiving.

Pay Attention to the Yield Curve..

While the general trend of the yield curve has been flattening this year (short term interest rates rising more than long term rates) the upswing in the curve over the past few months is just an interlude based around market player inflation talk.  Eventually we expect that the rate curve will go negative and that will be the time when you can start looking for a bottom is stocks. Start is the key word as prices are headed much lower as the Washington follies play out.

See the Market Puzzle and F-3 Fracture Charts here..(as of noon today)