5 reasons we are buying this "inflation-fear" 2-day dip. Wed could be the turning date higher.

The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members

VIDEO: We discuss the 5 reasons we are buying this 2-day dip.  Probabilities favor a turn upwards Wed

Please click below to view our Macro Minute (duration: 04:01).

The video in this report is only accessible to members
The video in this report is only accessible to members

Ever since the March ISM manufacturing showed a somewhat "hot" prices paid and coupled with the creeping rise in oil, equities have seen immense two days of selling pressure. The S&P 500 and Nasdaq fell -1% Tue and Russell 2000 -2%. During this time, long-term yields have crept higher and the VIX gained >20% and pundits are now expecting Fed to make even fewer than 3 cuts in 2024.

To us, the selling over the last 2 days is setting up to be another "buy the dip" moment. In fact, this turnaround is likely to start today (4/2). We see 5 reasons to "buy this mini-dip":

First, the broader indices are now oversold (30-min RSI) while still in the midst of a clear uptrend (>20D moving avg). The 30min RSI for the Russell 2000 is now 27, an oversold reading. As shown below, 7 of the last 7 readings of this level or lower proved to be a good "buy the dip" moment. And this is moreso true today given all major indices are trading above the 20-day moving average. Mark Newton notes that cyclical factors are favorable ...

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