|Checking in from the laptop as I enjoy this fine Summer day I see the market is holding very well as it bases prior to imminent upside breakout. Bullish divergences such as VEU, FXE, FXA, all FAR ABOVE their June low, and other bullish divergences such as McClellan Oscillator FAR ABOVE it's June low and others too numerous to mention ALL clearly point to a MASSIVE rally on tap for next week.|
Add to that policymakers will have a 3 day weekend to cook up a MASSIVE bailout/stimulus/money printing response to this weeks decline. Similar to the weekend after the 5/6 flash crash low when Europe responded with shock and awe 1 Trillion money printing and Fed re-opened swap line. That time the SPX gapped up 50 handles and continued to rally severely punishing the shorts. I would expect this time PPT actions to be even more extreme and so we will likely gap up more than 50 handles, maybe even 100 handles up to 1111 SPX. Or we may be LOCKED LIMIT UP at the open.
In any case I expect next week's rally will totally DECIMATE the bearz.