Thus far, market internals have been somewhat mixed, and we seem to be muddling around in what likely is a 4th wave consolidation and triangle. The market continues to ping-pong between the falling 5-day EMA and the Weekly Expected Move low. While we reached the 200-day line yesterday, we stalled at the short-term downtrend line this morning, so the line is above us today.
Here is a close-up view:
We have dropped back through the open, another slight negative. But the preliminary 4th Quarter GDP number came out strong at 6.5, at least that is the “headline number.” But the devil is in the details, as the fine print indicates a massive inventory buildup, no doubt over supply chain concerns. Will the consumers now show up?
Stay tuned.
A.F. Thornton