Capitulation Day 1 or Economic Collapse Incoming

There's not much to say because in these situations, the selling stops when it stops. Anytime is a good time for a low. Since the market closed near the lows, the final low might be as soon as tomorrow, or tonight in the futures. The first resistance area is 3820, once that falls then a low may be in. If the market goes lower, it could go a little lower and bounce at 3700 support line or it could go way lower to 3400. The Fed meets on Wednesday and that might mean bears don't press and bulls don't pounce until later in the week. Having said that, the three black crows on the daily chart is indicative of exhaustion coming at the tail of a long down move.
Individually, many charts look ugly. Here's my favorite bank because it is loaded up with crypto risk:
New 52-week low for Facebook.
FedEx, an important, economically sensitive stock, put in a favorable candle for a bottom.
Who's up for a 2008 or 2020 style collapse before the Fed even seriously tightens? Imagine those crashes without any bailouts and you have some idea of what is coming. Or imagine if those bailouts caused oil to shoot to $200 per barrel and gasoline to $10 a gallon, and you have some idea of what could be coming if they try a bailout before consumer price inflation drops.
I watch boring, stable stocks that invest in things like commercial and residential real estate. BXMT is the commercial side. It plunged 7 percent today, a massive drop that speaks of an economic calamity.
High yield bond spreads are surging towards the point where financial markets give up the ghost and implode. I think it speaks to why the market will probably bottom out fairly soon even if it means a quick 10 percent plunge first. Things are getting out of whack so to speak, and my sense is the faster moving markets will bounce a bit while the economy deteriorates and sets up the next leg down. Otherwise, if markets are accurately signaling a depression, then stocks are headed below the March 2020 low fairly quickly and we'll be talking about my 1500 target on SPX before year-end.
I don't have a good read on public sentiment. The public is upset about gas and food prices, but it seems like the ruling class' Trump obsession, declaring guns and Trump voters the enemy, the Roe vs Wade decision etc., are all giving the media good excuses for not covering the economic devastation unfolding in the markets. One can only imagine the non-stop apocalyptic reporting if Trump had been re-elected and something similar was unfolding. To some extent, the media is beside the point, but psychology matters for markets and the media can massage it for long periods of time.

At some point, the public will realize the depth of the economic destruction, but not yet.  

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