Headwinds…

The markets now face a tough decision. The stock market drivers are positive, even softening gold seems ready to join the party. But macroeconomic drivers are on an opposite course at the moment, and consumer polling sentiment is terrible. The Russell / Nasdaq ratio bears that out, market players are back to concentrating on the tech sector.

This needs to work itself out. My seat of the pants drive by analysis at large Chicago restaurants, parking lots are full, no sign of a recession.

Technically a close over 5521 on SPX and the RUT/NDQ ratio over 0.1050 (0.0990 to 0.1036 recently) would point to things having been resolved to the upside.

Update at 11:50 AM CDT

Climate Tech Model just went to 50 % hedged using SQQQ. NDQ at 19,317. We will wait for next couple of weeks to unfold as focus turns to congress and the government’s money. The failure of at least one of the two technical indicators for the moment was key moving towards caution.