EPS Season has been in line with our Projections for Q4, dismal would be Kind.
As we move into Tech Reporting, it is important to remember Apple's guidance fro 10 Million iPhone Delivery was low, and share buybacks were to be halted into EPS during the Blackout Period.
Money Center Banks began reporting and were Sold.
Retail Sales missed by a large margin.
ES closed flat Friday.
10 Year rose 8 basis points Friday. The BOE's 10 Yr and The Mid Bund rose 4 basis points as well.
We are approaching the next FOMC on January 25/26th.
FOMC Voting Members have become increasingly critical of Powell, suggesting the Federal Reserve is well behind the Curve in raising FED Funds and going so far as to suggest it may be necessary to increase the Dot Plot to 4 to 7 increases for 2022.
The Chart Structure is quite Clear, the only reservation is one of "B" and its potential for a retracement.
The Value Line Index has diverged from the S&P500, this has historically been an important warning for further follow on the downside.
Fear and Confidence have been shaken, the FED is no longer (Short Trem) able to gain the upper hand and turning on Policy... only compounds the Issues.
Over the past 22 months, every Dip has been a buying opportunity. Of late this has not worked out.
Lower Highers on VX with Higher Lows, it is wedging into a Break, a rather Large Break.