2022-01-25

Testing the Rally

The pullback in the major indexes doesn't surprise me. The question is how long can the bounce last. It looks like USD is ready to rip higher. I'm chart agnostic on ZB, short-term it looks like a reversal pattern might be forming with massive support underneath. If I'm Powell, keeping ZB from breaking support is far more important than a few thousands points on the Nasdaq, moreover the cost of elevating ZB is probably those Nasdaq points. I also noticed Australian resource stocks were crushed overnight, some of the stocks I added slipped double-digits overnight. There is evidence that the bull that showed up yesterday was a diseased corpse of a bull catapulted in by the bearish forces laying seige to the market.

2 comments:

  1. PALL doesn't seem too worried; could be another day with a surprise to the upside,regardless of the open. I will hold my SOXL and add a bit if possible. Really like your pieces on PALL; don't understand why it works as a pretty good indicator! Best wishes today.

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    1. I don't use palladium for a daily indicator, but it is saying some more strength for Nasdaq if it holds up.

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