BarroMetrics Views: S&P 2014-04-13
My free newsletter goes into this question in depth. In this short summary:
- The 13w has triggered an Upthrust Change in Trend Pattern. I need to see a WPC, LCC at or below 1741 and acceptance below the maximum extension at 1737 to confirm the trigger.
- The minimum target is the Primary Buy Zone, 1755 to 1.1741.
- The probable target is the 12-M line turn price, currently at 1520. This will move up at the start of each month.
- The AMB (FRED Graph) shows that the deposits with the St Louis FED Reserve have dropped. This is the first time (in the absence of some foreign event, EU crisis e.g.) that we have not seen the FRED graph give an advance warning of a decline in the S&P. In this instance it acted as a coincident indicator.
- Finally, the decline came in the face of comments from the FED minutes that tapering may be premature.
Perhaps we seeing a breach in the unfounded belief that the FED can indefinitely prevent bear markets in stocks?
S&P 13w Upthrust CIT