Traders need to be careful for the rest of the week. In a natural market the daily cycle should still have further to fall and after a bounce there should be one more leg down. But as I have warned over and over, we no longer have free markets. We have not had free markets since the SEC banned short sales on financials back in 2008. So it’s entirely possible the PPT intervened today and that’s all we are going to get for an intermediate cycle low.

This is why I don’t short stocks. You are fighting an opponent that has a printing press.

If support at 2040 is recovered tomorrow I would be inclined to assume the rest of the intermediate cycle decline has been prematurely aborted and go back into leveraged funds for the next leg up in this new 7 year cycle.

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Gary Savage
The Smart Money Tracker

Gary Savage authors the Smart Money Tracker and daily financial newsletter tracking the stock & commodity markets with special emphasis on the precious metals market.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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