First up with the S&P 500, guys. You see here with the S&P 500, we've got a beautiful culmination of about six trading days, all developing motion, moving price action down here on the S&P 500.
I've highlighted this before, guys. This pivot point, which is the previous all-time high, that's the candle that we broke out to get above in this most recent rally. I've been waiting for price to come back and test that level.
After all, how many times in this show do I talk about a breakout and a retrace bounce play. Now, this bounce is what I'm anticipating to occur should and when price come down to $760.40.
The thing that will will dampen the bounce, make it smaller is a couple things. First, we already got down here last week on Thursday, put up a small bounce right before the level, and secondly, the backdrop of what I described, the Fed is reducing our dollar buying power by doing these buybacks, maintaining the Treasury yield.
So, they're artificially doing this, guys. This is a currency debasement play. How much of this is going to be remain elevated, and how much are investors going to be eager to jump right back into the markets with all of this going on in the backdrop?
I know I'm not as eager, so I'm anticipating a smaller bounce should and when price hit there potentially tomorrow at $760.40. Now, if we didn't have this in the backdrop, I would anticipate a potential bounce much higher on the charts, but it is where we're at right now, so we've got to analyze where price can currently go.
