How crazy is this?
After trading over the top of the Strong Bounce line at 26,100 for 3 straight days, the Dow (/YM) and all the other indexes dover right back below their weak bounce lines and almost made it back to our baselines – with the Russell (/RTY) bouncing exactly off it last night and the S&P (/ES) failing theirs. But it was all pre-market nonsense, as is this morning's "rally" so we ignore it all and just focus on the same old levels we've been watching for a month thanks to our fabulous 5% Rule™:
- Dow 25,000 is the mid-point and bounce lines are 25,550 (weak) and 26,100 (strong)
- S&P 2,850 is the mid-point and bounce lines are 2,880 (weak) and 2,910 (strong)
- Nasdaq 7,200 is the mid-point and bounce lines are 7,360 (weak) and 7,520 (strong)
- Russell 1,440 is the mid-point and bounce lines are 1,472 (weak) and 1,504 (strong)
All except the Russell were green on Friday morning so a lot of damage has been done Friday's sell-off and that's AFTER the pre-market bounce is taken into effect. Trump (it's always Trump) at the G7 this morning, has been palling around with UK's Boris Johnson and promising a "very big tade deal" with the UIK and "lots of fantastic mini-deals" so of course, since Donald Trump would never lie to us, the market jumps up (again) on the President's word. …