This one chart of the Wilshire 5000 tells the squiggle story at the moment. The previous numerous posts on other longer-term charts and projections show the potential of both the near term bullish and bearish cases so there is no need to repeat everything tonight.
The main point tonight is the main horizontal support line of the peak of Minute [a] of Minor 2 is what the “algos’ are looking at. And as always, the overnight futures having thin liquidity, pushing prices sharply one way or another.
Yes, they can manipulate the market, however, in the long run, they cannot. Social mood will take long term prices to where they go one way or another. You can have a Ponzi scheme for many years, but one way or another it will be found out. You can cheat God one way or another but some day you will reap what you have sown and pay the price of stealing from your future generations to come. That much is certain.
The SPX with the same count and target ranges. A stupidly big gap down which of course presents an “easy” target for the algos yet sometimes the market will do exactly the opposite.
At some point, if this is truly Minor 3 of Intermediate (3) down, you’ll wake up one morning at “limit down”. Many younger traders have never truly experienced a bear market before or the excitement of a limit down, but we are due sooner or later.
At some point a true bear market will cause all to lose hope and of course we are almost infinitely a long way from that point in time. The market has a lot of work to do to turn this Grand Supercycle of 240+ years into the worst social mood downturn since the Dark Ages.
