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Friday, October 14, 2022

Is this just the beginning of the Face Melting Rally, we've been waiting for...?

 I'm short on sleep today, and have a lot of charting to get caught on, after the opening bell, so I have to try to keep this short. 

As I stated in Wednesdays update:

 "Bottoming is a process", which can't be rushed.    

I'm sure most my readers would like to believe that yesterday's rally was just the beginning of a more sustainable rally, but when I see the DOW, the S&P, and the NASDAQ, driven above , otherwise meaningless, round number targets  - (#DOW30k, 3700, 11k) - and this, trading into yet another short squeeze Friday, I have my doubts. 

There are other things I didn't like about yesterday's rally, including the fact that the most beaten down sectors didn't lead.... energy did. 

Nevertheless, after yesterday mornings little shakeout - on a negative $VIX, I might add - the $SPX is trading back above key support (3588.11).

This morning

Looks like we're poised to to fill the gap on the $SPX that was left behind last week 

Next real resistance looks like 3812ish

In Hindsight: 

1. "Only trust the $VIX...", not the red banners your seeing on the TV. 

 2. Recognize your breakout points 

I have a lot more to touch on, but I'm out of time, after getting bogged down in the creation of a new landing page for the weekly news letter. Be sure to sign up

You can review my play by play, in yesterday's twitter timeline, for more insight.  

Take Care, AA

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