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

Thursday’s CPI report could be the most volatile time this week, with SPX at-the-money straddles pricing in a 2% move.  As discussed, the hyper-weakness in Technology combined with the uptick in cross-asset volatility have most market participants wondering whether this will metastasize across global risk assets or largely be contained to severe weakness in crypto-currencies only.  Wednesday did show excessive volume in declining issues which caused a 2.4 reading in the Arms Index (TRIN) which normally suggests trading lows are close.  However, an elevated CPI report would be thought to lead below SPX 3700, which in view should result in a test of October lows.  Conversely, any gap above 3786 would give thoughts that a short-covering bounce could ensue, with more conviction above SPX-3861.  Bottom line, until evidence of strength occurs, and/or sufficient downside exhaustion signs in QQQ/SPY or IVW/IVE, it remains right to hold off on fighting this downtrend until proven wrong.  One should have a close eye on 3700 on the downside and 3861 on the upside as both of these areas are key.

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Growth vs Value broke five-year uptrends, but remain above long-term trends which could offer sup...

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