How does all this Evolve?
This is a late after the close comment. Today, market strategists seem to be agreeing that the market has hit resistance at the November to January highs depending on the Index.
What they want to do next is where the quandary exists. Seems the overwhelming conclusion is to sell a little now, get some cash to buy back after a 5 to 10 percent decline on the major indices.
All of this strategy appears to be based on the idea that a new phase of the bull market will arise out of the February 2021 price area. A belief that that area is where a new bull will arise, and a melt up move to the 6000 area on the S&P will then occur.
I believe that the above ideas are 180 degrees backward.
As all of you know I view this November to January market top as the end stage of the 40 year supply side economic movement that had inequality as one of its major results.
No doubt we will see a number of minor cycle moves as all this unfolds going forward. I would not want to try and layout a patchwork of support and resistance levels or timing points at this time.
We will go into those factors and ideas in coming days.