S+P 500's sharp bull rally back up to 4589 this past week
ser a "classic bear trap", as a wise market observer noted mid-week.
However,the "key prior Support" level that the bulls needed to overcome
the Dec 2021 low, now resistance of 4595 was never taken out.
And so back down they went with a bear trap, now just as suddenly turning into a bull trap
Thursday's scorchingly hot consumer price report, a 7 % month to month price increase in the US
lead by food,shelter, and energythe kind of increase that hurts the most caused futures traders
to show a 90% probability
of a .50% increase, not .25 % increase in interest rates, by the Fed at their March meeting.
The S+P 500 Closed Friday at 4418,
which puts this important index back right back in some important support just above 4400.
However, a Close Below the Jan 21,2022 Close of 4397, in my work,
could be very bearish, and send the S+P back down to test holy grail chart support right now... at 4300.
OF Note:
Goodyear Tire's stock on Friday dropped over 27 %,to 15.78 from a 23.34 High on Thursday,
the classic 100 year old tire maker in the US
falling more in one day than since Black Monday in 1987 !
The 83 % institutionally owned stock was sent crashing by an earnings call discussion when the CFO
admitted to analysts that revenue was projected to come up, get this 1 Billion Dollars short of estimates in 2022,
and potentially beyond
Why ? Goodyear blamed inflationary pressures building in the pipeline, across the board.
I mean if institutions can massacre a stock like Goodyear on a supposedly good earnings report,
what will they do to the overall US market, if disappointments like this become more of the norm
in what has become a rapidly, and previously not expected escalating inflationary US economy.
THE_UNWIND
2/12/22
Woods Of Connecticut
ser a "classic bear trap", as a wise market observer noted mid-week.
However,the "key prior Support" level that the bulls needed to overcome
the Dec 2021 low, now resistance of 4595 was never taken out.
And so back down they went with a bear trap, now just as suddenly turning into a bull trap
Thursday's scorchingly hot consumer price report, a 7 % month to month price increase in the US
lead by food,shelter, and energythe kind of increase that hurts the most caused futures traders
to show a 90% probability
of a .50% increase, not .25 % increase in interest rates, by the Fed at their March meeting.
The S+P 500 Closed Friday at 4418,
which puts this important index back right back in some important support just above 4400.
However, a Close Below the Jan 21,2022 Close of 4397, in my work,
could be very bearish, and send the S+P back down to test holy grail chart support right now... at 4300.
OF Note:
Goodyear Tire's stock on Friday dropped over 27 %,to 15.78 from a 23.34 High on Thursday,
the classic 100 year old tire maker in the US
falling more in one day than since Black Monday in 1987 !
The 83 % institutionally owned stock was sent crashing by an earnings call discussion when the CFO
admitted to analysts that revenue was projected to come up, get this 1 Billion Dollars short of estimates in 2022,
and potentially beyond
Why ? Goodyear blamed inflationary pressures building in the pipeline, across the board.
I mean if institutions can massacre a stock like Goodyear on a supposedly good earnings report,
what will they do to the overall US market, if disappointments like this become more of the norm
in what has become a rapidly, and previously not expected escalating inflationary US economy.
THE_UNWIND
2/12/22
Woods Of Connecticut