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April 12, 2024 - We are now heading into "Correction Territory", not to be confused with a complete break down . . . at least not yet. Not surprising since this market has been on a major and steep rise for over 5 months now. Fueled by the hopes of multiple interest rate reductions coming as soon as June. But, that doesn't appear to be the case and the markets are disappointed.
Add to that JP Morgan's earning guidance projecting out to be lower in the coming months and well . . there you have it. Disappointment. Continued conflicts in the Middle east certainly don't help and the Ukraine/ Russia situation appears to be stalled. Disappointment . . . . no immediate reason to buy right now.
The circled area shows price breaking below the Purple Stop line and the Black Lower Channel line and also the Blue Moving Average line too. These are drawn on a daily chart and indicate a near term "Change of Character" in this market. IF these were violated on a weekly chart, I'd say we're in for a full blown down trend; we're they aren't.
I have a higher than normal amount of Cash waiting for the right time to put it back to work. Likely this market needs to poke a little lower (maybe 5% lower) then consolidate for a few weeks. No hurry to jump back in here now. Have a good week. ............ Tom ..............