SP500 Hits Fib .768 Retrace Level

Technical Analysis

SP500 took only a few days this week to reach the 3113/3115 Fib. technical retrace level. The SP500 closed last Friday at 3042 and with the weekend riots, the futures dipped down to 3009, but have since rallied over 100 points, putting in a high thus far today of 3117.50.

It will be interesting to see the close today, we would suspect the bulls would want to keep things well entrenched above this 3113 area. We are curious to see if the large scale trading operators are seeing sufficient weak data from their AI and Machine Learning tool set to suggest a push or reversal lower from here warrants some arrows from their quiver.

Here is the chart from tradingview.com:

With daily o/n Repo continuing to stay well elevated hitting a new 2.5 month high yesterday of $57.4 Bln, we can’t help but think the lack of QE daily from outright UST & MBS is beginning to weigh in on liquidity a bit.

@QTRResearch had some good tweets the other day, highlighting some of the Feds Chair Jerome Powell’s recent remarks:

We love how he highlighted the fact that the central bank has been using “emergency” tools for the last 2 decades. Heck we believe its been a lot longer than that and if this weeks equity market action doesn’t force you to think differently about nominal asset prices and what really drives them, well, we hope you reconsider your beliefs.

-Magnelibra Econemotions

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