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Monday, September 18, 2023

Market Update Monday 9/18 - Bull Trap Confirmed

First off: It was good to see volume finally pick up on Friday, after months of summer doldrums.  

To get you caught up to speed: 

We saw the market give back most of last week's gains, on Friday, which was not at all surprising after the warnings I put out there, on Thursday.

$VIX red flag spotted on Thursday  

$SPX red flag tweeted Thursday  

$VIX - bull trap triggered at Friday's open 

$SPX 50 day moving average sold. 

Dow 50 day moving average sold, on decent volume.  

Bull Trap confirmed 


And by the end of the trading day, Bloomberg was seen reporting that the market had sold off for the 2nd week in a row - which is debatable. 

Sure, if all you're watching is the $SPX it technically closed down .16% - for the week, but reporting it as some sort of bearish trend is highly deceptive.   

 $SPX - weekly - Bloomberg tries to make the current trend sound bearish  


Speaking of  Bloomberg News Spin    

This morning Bloomberg is seen peddling Dr. Doom Nouriel Roubini, and they even asked him if he would be long, or short US equities? He said he would be short, going into the end of the year. 

 I'll leave it for you to decide what that means.   

The Fed

This week, ahead of a midweek Fed rate decision; expect more sideways consolidation  

Then on Wed. expect the Fed to continue the pause in interest rate hikes. 

That should be good for a relief rally, at least. 

Take care, 

AA 


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