Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Wednesday, January 13, 2016

Bulls Bail, Market Craters

What can you say?  The bulls were served up a great setup (detailed in my previous post) for a run back up to S&P 2000, they bought in, held one day, then quickly bailed.  I really hope they are not waiting for a better setup because this was a gift and they didn't trust it.  

Looking at the charts below, we can see that the S&P's must hold 1900 level didn't.

As for the Nasdaq, it closed right at its must hold level Wednesday.  Barring a divine intervention by that mysterious S&P Futures buyer, the path of least resistance is downward and may continue to be for a long time with occasional short but furious short squeeze bounces thrown in.  

Trade well my friends


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