Most key stocks & the indexes will move above or below the 200’s for a brief period when falling or rising to them, assuming the will be rejected on that attempt to take them out. It’s not a singular event, rather a compilation & progressive move above the key moving averages and/or price/trendline resistance/support levels that need to occur. i.e.- the more indices & key stocks that take of such key levels & the father away they move from them, collectively, the greater the chance that breakout or breakdown will stick.

The damage to the financial system & economy is already done, IMHO. Just takes some time as there is a lag time before the rate increases have fully permeated into the economy & stock market. Again, just my opinion & I’ll let the charts tell me if I’m wrong & need to shift my long-term outlook.

2008 redux except 2008 is still fresh in many folk’s memory so I don’t this rally from the initial bank bailout will last as long as the fall-2008 rally. If my read is correct, as soon as the nervous shorts finish covering, the masses will realize that this is just the beginning, not the end of problems in the financial system due to the end of the free/cheap money era.

Thanks!

Nice spot. One of the better looking short setups IMO but just that, a short SETUP, with a sell signal to come on a break below the uptrend line/bearish rising wedge pattern. A solid break below the wedge would also mean a move back below the key 90 resistance, meaning the recent breakout above that big resistance level has failed. With the negative divergence in place coupled with my bearish outlook for the stock market, I’d say there is a very good chance of GE triggering a sell signal soon & playing out to most or all of my targets (arrow breaks on this daily chart). Thx for pointing it out, I’ll share it in the next video or as a stand-along trade idea.

BTFP and the likelihood that the Fed stops rate hikes after a 25bps hike next week really makes it difficult to be targeting lower prices any time in the near future. QQQ and SOX have been consolidating in a bull-flag over the last 6 weeks, biding time for another leg higher.

Any thoughts on that Randy?