A blue candle for the sp'500

The sp'500 saw a second consecutive net daily decline, settling -20pts @ 2045, with a notable (if momentary) break below the Friday morning low. The bigger weekly cycle is offering the first sign that the rally from sp'1810-2075 has concluded.


sp'weekly6

Dow'weekly2

Summary

re: sp'500: the first blue candle... as ever, how it settles the week will be pretty important.

re: Dow. In theory, if the Dow doesn't see renewed upside into the 18000s, the 'natural' downside target for the summer/early autumn would be around 12500/400... a clear 5000pts lower.

For now...  such a target is the stuff of bear fantasy land, but its something to keep in mind.
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Market/econ chatter from Schiff




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Looking ahead

Wed' will see the EIA report. More importantly, the latest FOMC mins will be published at 2pm.
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Goodnight from London