Well there we have it! It’s official – the S&P 500 achieved the 2,000 Magnet target.
We now ask the question “Did buyers use up all their fuel to push the market into this level?”
Let’s take a look at the charts, breadth, and highlight our trending stocks of the day.
I’ve repeatedly stressed the “Repeat Pattern” in the S&P 500 to members (and the open blog) recently and for good reason – the market traded up exactly as would be expected according to the “Repeat Pattern” thesis (it was very successful).
So here we are – either price skyrockets through this level on a “Short-Squeeze,” or perhaps more likely we see a Bull Trap trigger with a reversal down against 2,000.
Note the clear negative TICK divergence which argues for a trap-and-collapse scenario.
Either way, we’ll focus all our attention on the 2,000 index level. Continue Reading…