2022-02-14

Market Rebounds After Fake Invasion Story Fades

All three indexes remain below important areas of support/resistance. I still expect new lows, but maybe it goes up first. Bulls are still buying the dips. Friday's move was a blow to bulls' confidence so I don't expect the market gets much higher. Simlarly, bears are emboldended. Both for good reason. Bearish patterns reliably failed in the 13-year bull market. When they start working, and when bullish breakouts start failing, that is a major sign of trend change. Lower highs and lower lows is my expectation until the charts say otherwise.
Treasuries are indeterminate for the near-term because stock market panic could ingite the bond bid. I'm focused more on corporate credit, high yield and also investment grade. The latter is "junk in waiting."

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