Stock Market Top Signal Confirmed–What’s Next?
We had discussed that a close under 5090 on the S & P would be a first topping signal for stocks and the 2nd one will come with a close below 4936 on S & P cash. We do see a secondary high into April 22-28th but it is likely a secondary high
We do have a bias for a low into Friday but now the context is looking like at least a move to cash 4955 or extended to 4903. Key support for one more low today is at least to 502 or 5207 on cash. We will get a retracement of the fall from 5265 on cash to Friday’s low and there is a gap at 5200 but maybe that is where it goes into April 28th.
We have been getting signals that something is wrong with the break of XLK, the eroding bond market and the strong dollar. . We have several crisis cycles this month on the geopolitical front but they could take their time to manifest. We have one into April 19/20 and then another into the first week of May.
We have warned you for weeks that if oil breaks out and projects 98 or 106 or higher that is not going to help the Fed’s easing stance and inflation will run away. We had a key inflation cycle high for May and it appears on schedule. The CPI went up because of food, energy and housing costs.
Obviously it is time to raise cash and consider shorting and hedging strategies. We have an August 2024 low and our daily timer have targets. Stay on top of daily gyrations with the Fortucast Financial Timer or the Fortucast ETF Timer. Sign up for a 1 month trial at Fortucast.com for 97.00.
