Possible Area of Trouble for the Markets was just hit.

6 Jun 2019

The last few days (beginning of June) were incredible with the DOW up almost 700+ points in 3 days. Drivers of this include the possibility of the Powell Put/Rate Cuts, delay of Mexico Tariffs, and so called "progressive" Chinese meetings (mostly jawboning but hey it works.) As usual the market always maintains mostly buy on the rumor, correct a little if its proven false, or continue higher after confirmation. Theses are characteristics of a Bull Market and until the narrative changes don't fight the tape or the FED. However, from a chart perspective do not ignore the structural damage the last 6 months has been to the SPY. We have already seen a double top in which we're in the middle of another leg lower until the positive move this week. We are currently at the 50% retracement level of the previous low prior to the run-up. This is ironic as if the tariffs are truly delayed and more good news comes out expect higher highs and a retest (possible triple top) in the future. However, this is definitely a profit taking area and one I normally follow to begin trades in the opposite direction that follow the major trend which is still down. The close Today (Thursday May 6th) was not terrible but not good either. Keep a watch and if bad news comes out expect more downside with the first target at the lows we previously seen earlier in the month.

8 Jun 2019

Nota

And just like that Trump has suspended the Tariffs due for Monday! We shall see how it opens but my guess is we will see the previous highs soon.