E-Wave for the S&P 500 Index

[gdl]

Every single data point has been devastating to the Goldilocks scenario. Not only has inflation spiked again but the assumption that wages and spending will keep up has been utterly shattered. The report Friday was so bad there couldn't have been a worse scenario if you tried. Core PCE prices surged as income and spending came in at HALF what was expected.

BUT this market's slide has been so controlled you would think that an intelligence was behind it. Every single possible support zone was tested on the way down and held for that day. There was not a single day of panic and every slide was slow controlled and moved to predictable resistance points.

So here we go again! Monday should be the last day of slide. It should once again see the next zone 3912 area and rebound off f it. If this occurs count on a big rally after. ONLY a clean slice right thru the next resistance point will possibly cause a panic. Highly unlikely.

This reminds me of the announcement of a pandemic. we knew with certainty how such an event occurred 100 years ago. We knew with certainty the human toll it would take. And yet the bullish stance was detached from reality as if someway things will work out. Weeks went by with hardly a drop. Human nature seems to cling to the optimistic path regardless of the likelihood of success. We could actually wait for the next opportunity for a dramatic slide when the next quarterly earnings gets going. Late April/early May the stark reality of how earnings will get affected will be displayed. Majority of companies will likely miss earnings target by a small margin but announce a huge revision for future projections.

IF we stabilize early next week the likelihood of a bull market continuing till late April is high IMO. We seem to prefer dancing on the deck of the Titanic after the iceberg struck than accepting our fate.