A bit of a bearish selling day. However, the overall count(s) are not broken. If wave C of (2) is still intact, it will recover. If Intermediate (2) has topped, then expect sooner or later real selling will be upon us again.
The market is still hanging in there despite the rotten economic foundation and interest rates absolutely wreaking havoc behind the scenes. Consumers are spent. Corporations are under pressure to cut costs because they are all bloated with debt.
If one looks at the cont8inuous credit expansion since Nixon killed the last vestiges of the gold standard in the early 1970’s it has virtually never dipped, only expanded. The only threat of a dip was the great recession of 2008-2009. It is threatening to dip again. Except this time the system is much more bloated than even 15 years ago.
Prices are still a concerted effort away from taking out the February peak and at the same time a long way from the March low. The swift 2-month downdraft from August to October has created a huge trading range that has lasted for over 6 months. This was to be expected I suppose.
The counts are muddled. But overall, the Titanic Ponzi is taking on water. The government itself has admitted it is running a Ponzi as they tell us unless they are allowed to continue to borrow and expand the debt, the whole thing will default. It is probably the only thing they are honest about. Except it’s a threat when you think about it. Bring it on I just don’t really care anyway. The sooner the better.
Patience.
