Pre-Market Outlook – 9/13/2021

We are launching the new website features this week which will take some precedence over the market outlooks until Wednesday. We saw a change in character last week, as the market moved into its cycle trough early, likely commencing a larger correction than we have experienced the past few months. We will likely see a bounce this morning, and if I were not focused on the website launch, I might even look to short it.

We need to break the micro down channel and trend to get bullish again, recapturing the 5-day and 21-day lines. Bulls will try to recapture those lines today, but the task might be more difficult now as the next trough is not due to bottom until September 20th or so. The raging inflation indicated by wholesale prices last week is unhelpful, and all eyes will be on consumer inflation this week.

Then there is the next Fed meeting. The Fed faces a slowing economy and rising inflation, reminscent of the 1970s – like everything else lately.

I will keep you posted, and we will be back to the normal outlooks mid-week.

A.F. Thornton