The Backup Walls are Crumbling…

Joe Biden had a good economy for a number of reasons. First, he was aggressive in getting the FED and the Administration to work together in turning around the pandemic panic. Secondly, he believed that there was a War on Climate Change that needed to be won. Third, he knew how to get legislation passed, a couple of big things were the Inflation Adjustment Act and the Chips Act, plus a number of Infrastructure bills.

Now with the Trump Administration looming, many of these economic backups look to be in trouble, plus the Administration is totally blowing off Climate Change Initiatives.

Markets are watching now that the initial market euphoria is dissipating.

The first market test appears to be forming starting tomorrow. The cautious tone that we have been trying to convey since the election is now in play. Technical analysis suggests that the support level on the S&P in this cycle is in the 5310 area, down 13 % from this week’s highs.