The overnight killing of a revered Iranian general
by the United States, with President Trumps approval.
has caused financial markets to suddenly, think of the unthinkable,
the possibility of war between the US and Iran.
You can tell the market is taking this dire possibility seriously,
with the overnight spike in crude oil which had been rising steadily in price in recent weeks,
along with the continued breakout in precious metal prices.
It is thus important then to take a step back, and judge this "immediate "market reaction in the context,
of longer term chart support. I have included the Weekly S+P 500 chart for your illumination..
The potential certainly exists, and should not be discounted ,that the all time breakout high of S+P 3258.14
on 1/2/20, may prove to have been a "false breakout" and the consequences of that, could be ultimately dire as well.
Watch 3212.03, the 12/31/19 Low. That is very important support.
A breakdown below that support,would confirm a "technically invalid all time high" on a Weekly Basis,
and immediately put the intermediate support risk to S+P 3070,... back on the table.
SPX Last 3257.85
THE_UNWIND
1/3/20
NEW YORK
by the United States, with President Trumps approval.
has caused financial markets to suddenly, think of the unthinkable,
the possibility of war between the US and Iran.
You can tell the market is taking this dire possibility seriously,
with the overnight spike in crude oil which had been rising steadily in price in recent weeks,
along with the continued breakout in precious metal prices.
It is thus important then to take a step back, and judge this "immediate "market reaction in the context,
of longer term chart support. I have included the Weekly S+P 500 chart for your illumination..
The potential certainly exists, and should not be discounted ,that the all time breakout high of S+P 3258.14
on 1/2/20, may prove to have been a "false breakout" and the consequences of that, could be ultimately dire as well.
Watch 3212.03, the 12/31/19 Low. That is very important support.
A breakdown below that support,would confirm a "technically invalid all time high" on a Weekly Basis,
and immediately put the intermediate support risk to S+P 3070,... back on the table.
SPX Last 3257.85
THE_UNWIND
1/3/20
NEW YORK