With technology stocks,including Apple and Amazon leading the second weekly decline off the all time high
the technical pattern setup of the S=P 500 has morphed into a "Bearish Descending Fan Formation."
( See the enclosed chart)
The identification stamp of this pattern is one of increasingly bigger and wilder price swings
the kind of roller coaster trading meant to shake out even the strongest of hands,
Markets have begun the "discounting process".
Interest rates are rising significantly, although still historically low,
with inflation picking up in the pipeline, and business's worldwide looking to pass on price increases
in anticipation of a new renewed economic boom for cooperate America
believing that the vaccines will do the trick and bring a new normalcy back to the world.
However, heres the question as I see it.
What if that supposed massive pent up demand in the US economy ,
isn't really there, when they get the green light to go again ?
But not so fast.
What if the recovery has already happened.. under the cover of darkness ?
Great anticipation can often lead to unexpected disappointment.
Why are a number of key stocks breaking down below their 50 Day Moving Averages ?
The market is beginning to tell you that something, And its not good. Are you kinda paying attention ?
The economic recovery from this pandemic will NOT, look like anything that anyone is currently expecting.
No one really knows what will happen next. No one.
So then...
Do you think you can outsmart this market ?
THE_UNWIND
2/27/21
Woods Of Connecticut.
the technical pattern setup of the S=P 500 has morphed into a "Bearish Descending Fan Formation."
( See the enclosed chart)
The identification stamp of this pattern is one of increasingly bigger and wilder price swings
the kind of roller coaster trading meant to shake out even the strongest of hands,
Markets have begun the "discounting process".
Interest rates are rising significantly, although still historically low,
with inflation picking up in the pipeline, and business's worldwide looking to pass on price increases
in anticipation of a new renewed economic boom for cooperate America
believing that the vaccines will do the trick and bring a new normalcy back to the world.
However, heres the question as I see it.
What if that supposed massive pent up demand in the US economy ,
isn't really there, when they get the green light to go again ?
But not so fast.
What if the recovery has already happened.. under the cover of darkness ?
Great anticipation can often lead to unexpected disappointment.
Why are a number of key stocks breaking down below their 50 Day Moving Averages ?
The market is beginning to tell you that something, And its not good. Are you kinda paying attention ?
The economic recovery from this pandemic will NOT, look like anything that anyone is currently expecting.
No one really knows what will happen next. No one.
So then...
Do you think you can outsmart this market ?
THE_UNWIND
2/27/21
Woods Of Connecticut.