Key Takeaways

  • Friday’s decline has achieved my Base case 2022 technical target and Friday’s reversal gives hopes for a short-term rally getting underway
  • Very good price action in Equal-weighted Healthcare and Technology this week
  • VIX recent lagging could be construed as bullish, sniffing out market bottom
The video in this report is only accessible to members
The video in this report is only accessible to members

Markets promptly reversed early uptrends to sweep under last week’s lows and officially reaching the 2022 Technical target which I released back in January as a Base Case scenario.  SPX has reached -20% down, causing many in the media to proclaim that we’re now in an official bear market.  The late day reversal however was constructive in recouping last week’s lows to close positive on the session, giving hopes that a minor bounce is underway.   While I dislike making big counter-trend calls within downtrends, markets likely have exhausted themselves near-term to the downside and could rally into late May.  Initial SPX targets lie at

4020-30, and above near 4100 remains important as resistance. 

The video in this report is only accessible to members

Technical developments over the past week

SPX’s decline has now reached the 38.2% Fibonacci retracement area of the 3/23/20-1/3/22 rally and is nearing a 23.6% Fibonacci t...

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