“Relax – It’s just a little pinprick” – Pink Floyd
“Relax
I’ll need some information first
Just the basic facts
Can you show me where it hurts?“
It is just a little pinprick as we pull back from 5,300 on the S&P 500 after blasting up from our 4,400 (inflation-adjusted) base-line since the literal Fall but it was a legitimate breakout from the bottom of the range we’d been in since 2021 and it looks like that 200-week moving average is going to hit 4,400 by the end of the year and that should firm up that base-line very nicely.
Our 5% Rule dictates that we use the range from 4,400 (consolidation) to 5,200 (next major support) to calculate our current bounce lines so that’s going to be 20% of 800 is 160 points each which means our daily chart should look like this:
IN PROGRESS
