• 745 days Will The ECB Continue To Hike Rates?
  • 745 days Forbes: Aramco Remains Largest Company In The Middle East
  • 747 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,147 days Could Crypto Overtake Traditional Investment?
  • 1,151 days Americans Still Quitting Jobs At Record Pace
  • 1,153 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,156 days Is The Dollar Too Strong?
  • 1,157 days Big Tech Disappoints Investors on Earnings Calls
  • 1,158 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,159 days China Is Quietly Trying To Distance Itself From Russia
  • 1,160 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,164 days Crypto Investors Won Big In 2021
  • 1,164 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,165 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,167 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,167 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,171 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,171 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,172 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,174 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

The State of the Trend

A lot has been written already about the Cyprus fiasco, but we believe one more angle should be considered: that episode gave us only a little taste of what to expect when the Fed makes its next faux pas, the difference being that the drop down the elevator shaft will dwarf last Monday's tiny sell-off. The chart below shows what's at stake:

If history is any guide, the question should be when the Fed will make a faux pas, rather than if. Whether they initiate on their own a clumsy attempt to put an end to the perpetual QE, or whether inflation and the economy force them to do so, confidence in their ability to engineer a graceful exit is near zero.

In the meantime, enjoy the ride, as the daily, weekly and monthly trend for the SPX, NDX and DJIA remains up:

For those who worry about continuing spillover effects from Cyprus next week, the intraday SPY chart below points to the key levels to keep an eye on:

Key DOW Levels Chart

That's 1535 - 1560 for the SPX.

 

Back to homepage

Leave a comment

Leave a comment