The Trump Pump Effect is Starting to Wear Off

The market is currently in a short term 22-day consolidation.

We currently have a double top and considering the futures, we will probably hit a triple top.

What is interesting to note is the recent $3 trillion aid package did not have an extremely positive effect on the market, unlike those previously.

Looking at the advance-decline ratio we see that the Bullish appetite is diminishing, meaning the extremely bullish days are losing their power.

RSI is neutral suggesting a potential turn-around.

Finally, the KST indication is crossing over at the suggesting the market is running out of steam.

At some point, the market participants will realize that there is a serious economic decline ahead.
My guess is a triple top, decline, panic selling, and another bottom.

“You will get business failures on a grand scale.” So declared James Bullard, president of the Federal Reserve Bank of St Louis, on May 12th. Peter Orszag, a former official in Barack Obama’s White House and now with Lazard, an investment bank, warned that the American economy could face “a significant risk of cascading bankruptcies”.

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Thanks

Barry

Comment:

Knock knock knockin on heavens doooooor. Wa wa wa wa wa :)
Overhead resistance at 3,000 (triple top) is holding strong, but for how long? A strong breakthrough here and I am lonnnnng.
Psychological Pivot Point.

Comment:

A close above 3000 might happen today. The 3000 resistance might become the new support. But we see the market at a key pivot point. I am neither long nor short at the moment waiting for a new firm direction.