Well, tomorrow should do most of the heavy lifting following the CPI, provided it comes in favorably. We can easily see a 100+ bagger tomorrow. If that's the case, 4100 is the OBVIOUS target (and then maybe another 50 points on Friday to end the week at 4150 as you suggest.) Keep them fingers crossed.
We might drop down to 3973, but no more than that IMO. That's about 15 point drop from where we're trading now. So ya better adjust your stop.
Unless the bear market ends this January, I wouldn't think we trade much above 4060 tomorrow. Right now everyone seems to be long, so that warrants some caution. That report tomorrow could easily reverse the markets as well. 4150 as mentioned would make this a 6 % week and a bit of an outlier, so not statistically likely, although we've had stronger weeks than that historically. I would be paying attention to that 4030 number and see if that can trigger a reversal or if we blow right through. Provided we even go that high.
Similar view on the cash index. Coming up at the 200 day MA, an open gap and a trend channel high. Who knows. If that number comes out favourable maybe the market will rally through all perceived resistance and print an outlier week.
Agreed. And the 3973 SPX level is a 0.618 resistance level too. I am pretty much as short as I have ever been right now in terms of position size. If I lose then that must mean I have become too arrogant recently When big banks start to make big long predictions that always makes me suspicious. If the market suddenly went down hard on Friday the 13th then I think the herd will just attribute the move to bad luck. I believe Friday the 13th is also a key earnings day right? We also have the largest population on Earth recently become free to travel again after saving a huge pile of money during their lock-downs. Surely this will drive global inflation at some point soon?
@schizo I see several failed IHS patterns in that chart as well, so wouldn't bet the farm on it. Let's see how she goes. Exciting times for sure.