Is the SPX500 getting Seasick or is this a Coffee Break?

2 thg 1, 2017

Now that we have touched pretty lofty levels in the indexes and traders may have taken a few too many trips to the Trumponomics cocktail party punchbowl, let us take a step back and make sure they weren't serving Jonestown brand Guyana Kool-Aide. The rising intermediate support line is currently at 2204 - 2205 and all bullish parties involved have a vested interest in seeing what that level is made of 'if' they have the courage to test it. So if we test that level and it holds, then we may see CNBC bring out their DOW 20K party hats again. If we test and fail, then the last wave of bulls into this rally may end up looking like the first wave of troops landing at Omaha Beach in Normandy as the tendency would be to make a bee-line for 2134.