Monday Game Plan

I'm watching the 2650 area on the S&P 500 Index. It lines up with the 38.2 percent fibonacci retracement on this downturn. Above that line, it would also break the downtrend resistance line. Then I think a run to 2700 gets underway. Slightly above that is the cyan support line from the 2009 Satanic low. That would also be a good fail point. Barring good news about the virus in the short-term, I don't think the market will move much beyond that.

Bitcoin looks weak here, a test of $5500 support area incoming. At this moment, I do not think it will hold. As an indicator of speculative excess, the implication for broader markets is bearish.

I still hold long-term positions in gold mining shares, but I'm heavily long calls on DUST, an inverse gold miner fund. Net bearish in my overall exposure. Given the compression of time in this bear market, I could reverse that position as soon as tonight with offsetting futures positions. But that's where I am heading into futures open in about 90 minutes.

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