There is not much change from yesterday. The market is trying to pivot from the 21-day EMA, similar to the past few months at about a similar point in time. As a side note, don’t forget to switch to the “Z” contract today.
If the 21 holds, the market likely will make an attempt at the old highs. If not, a larger correction is underway. In any event, it is all about the Fed and Fed policy. The liquidation break yesterday was driven by Fed comments, and even the European central banks are weighing in with rollbacks.
Sentiment remains negative enough that the market could hold the 21. But there also is a negative pell over the country given the Biden speech yesterday and what it portends in terms of authoritarian overreach. It is almost laughable now that the Democrats accused Trump of being a dictator. I think they call this “projection”
The problem is that in a time of supposed labor shortages, a lot of people could refuse jobs if they are required to take this experimental vaccine in order to work. We don’t yet know the potential impact of these mandates
Stay tuned and focus on the 21-day line today as your threshold.
A.F. Thornton