Nasdaq Chart Downtrend Channel

Just wanted to post this chart of the Nasdaq as the downtrend channel dominates the action here as longer term resistance near 13500 proving too much. Yea its been a nice relief rally, but let’s be honest, nothing has changed, inflation is still elevated, the intergovernment factions of proBiden proTrump are obviously at war and the world is as unsound as ever. We won’t even discuss the ongoing unfolding of cosmic interference and no we don’t mean climate change, rather volatility seems to be increasing all around us. If you don’t feel the destabilization or if you can’t see that the world doesn’t seem as stable as one would like well, you just ain’t lookin!

Anyway the rally has stalled and with Elon monetizing his overinflated net worth, well we weren’t born yesterday and exit stage left on the long snap back rally seems to be in order. Now will we consolidate, yes most likely, however we are in the camp that the FED is not going to play very nice over the coming 6 months. In fact the Fed Funds hasn’t even posted up vs the US 10Y to offer negative carry yet. That is going to change come next rate hike and then we will truly see whose swimming naked in the land of over leverage…