"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 15 hours The $85B Merger That Could Change The Media Forever
  • 16 hours Why Are Governments Creating Their Own Cryptocurrencies?
  • 17 hours How Debt Cycles Impact Gold
  • 18 hours Investors Up the Ante In $1.5B Uber Loan Deal
  • 20 hours Are Gold Miners Poised For A Breakout?
  • 21 hours Is The "Crypto Winter“ Over?
  • 23 hours China Says It Doesn’t Fear Trade War
  • 2 days Twitter CEO: The World Will Have A Single Currency
  • 2 days Asian Currency Correction Could Signal Looming Crisis
  • 2 days Best Buy Drops Telecom Giant Over National Security Threat
  • 2 days The Pros And Cons Of The Federal Interest Rate Hike
  • 2 days Good News For Gold Bulls Despite Interest Rate Hike
  • 2 days Trump Hits China With $50 Billion In Tariffs
  • 2 days Russian Gold Reserves Hit Record High Amid Rising Tensions With West
  • 2 days Stocks Pull Back Following Interest Rate Hike
  • 3 days Will Regulatory Rollbacks Make Banks 'Too Big To Fail?'
  • 3 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 3 days Tech Giants Could Be First Victims Of U.S. Trade War
  • 3 days Dow Gains Despite Fed’s Rate Hike
  • 3 days The Biggest Threat To Chinese Oil Futures
Economic Pressures Weigh On Banks And Borrowers

Economic Pressures Weigh On Banks And Borrowers

Banks and borrowers are under…

Investors Up the Ante In $1.5B Uber Loan Deal

Investors Up the Ante In $1.5B Uber Loan Deal

Uber may be facing significant…

The State of the Trend

Last week we identified the SPX 2007 high as the key level to keep an eye on, and as a litmus test of whether Bernanke's words are doing more harm than good.

SPX Chart

As soon as the SPX dropped below that level, the FED started backpedalling and dragging out FED heads to soothe the markets. Although a similar strategy can be successful for only so long, desperate times call for desperate measures.

From a cyclical point of view, there is a clear historical precedent for what may happen if the stampede for the exit gets out of control:

The mid-week rally fizzled within the May 3rd gap zone, better visible on an intraday SPY chart:

Moving back to the daily SPX, this creates very clear pivot levels for the days ahead: bullish above 1620, neutral between 1576 and 1620, and bearish below 1576.


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter