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Enough excuses for S&P 500 to correct 5%-7% (to 50D or 100D mavg) but TINA "put" still in effect...

Since peaking last Tuesday (1/22) at 3,338 (ATH), the S&P 500 has tumbled with two ugly back-to-back days, with equity markets now down 3% from ATH.  While the sell-off is a mere two days, the velocity of the decline has pushed markets into oversold territory.

POINT: The TINA "put" comes into play if 30min RSI (14-period) <30 -- has been a "money" trade in all of 2019...The 30min RSI (14-period) is now oversold at <30 (see below) and the last 4 times this happened, it was a profitable entry point.  In fact, this was true in the last 10 instances (from June 2019). 

- As long as investors remain too long "cash," these pullbacks are bought.  Think of it as TINA (there is no alternative) "put"
- And the TINA "put" is still in effect, as long as the Fed remains "easy" (check, yes) and yields are low (check, yes).

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POINT: But the "wall of worry" has signs of a more than garden variety bad day...Tempering the above view, we think a visit to the 50-day (5% correction) and even 100-day mavg (7%) might be warranted as a cumulative number of factors does heighten the risk that 1H Global GDP comes in the weak side: - Boeing woes are having an impact on US GDP and was evidenced by the weak ISM readings (Dec survey reflected the announcements);- Corona hyp...

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