Living in a Manipulated Market…

Even though the three main indexes held at critical levels yesterday, one has to keep in mind that market moves in this environment are a cross between bullish hopes and bearish fundamentals and function based on Trump’s intuition and threats. That means one day technical levels are important and another day Trump’s whims and pronouncements are important. For the S&P, a close over 5513 would tell me that bullish hopes are starting to matter. In the meantime, short-term RSI, maybe using 30-minute bars may be a good backstop for handling the volatility.

As mentioned yesterday the RUT / NDQ ratio will tell me when the market is getting a better overall outlook.

And it appears that looking at the news this morning Trump is trying to use hope of lower interest rates as a market factor by threatening Fed Chairman Powell.