I know that technically using the "economy" tag on these stock market index posts is not 100% accurate, but right now the US stock market is the only market that is not in total collapse mode (yet), and so therefore if the stock market is up, there is this weird sense of "everything is still ok" with most consumers. It's wrong and ignorant, and in any economy there are hundreds of markets, but for right now the only thing holding the US economy up is the Federal Reserve, and the only market that is benefiting from this insane money printing is the stock market, as well as the Billionaire welfare/bailout fund, and even this is apparently not enough.
So in that light, let's recap from yesterday. Yesterday my spidey sense was tingling and by my best guess the Dow Jones was looking to drop to the 200 day moving average, and soon.
It appears that insiders at Wall Street are angry, because the Dow not only opened below the trend - breaking it, but the index fell to the support line of the long 2-year trend, threatening to break even that and touch the 200-day moving average.
Here is a zoomed-in view:
(If you're new to my blog, those red, yellow and green lines were my projected worst, normal, an best outcomes for the remainder of 2019)
So, let's not kid ourselves, that drop today is 100% deliberate, and intended to send a message to someone. Clearly, traders are pissed at someone cough Trump cough, either that or its a really nice fake-out.
I still think we'll know for sure by this Friday afternoon. To touch the 200-day moving average (see below), the price will need to break out from the 2-year trend, which in and of itself could trigger a panic sell-off.
As Agent Smith said in the Matrix, "That is the sound of inevitability."
I hope this has been informative. Thank you for reading. Stay safe and keep your head up, especially now.