Let's get right to the point.
Here is the chart of the S&P with a horizontal line connecting what is roughly the 4100 level since May:
I can count on one hand the number of investors who are bullish down here.
In other words, investors are, by and large, being played.
Why?
The markets are doing absolutely nothing, except throwing an exceptional temper tantrum that is causing investors to bend to the whims of whatever they are being told is true by what is basically the echo chamber of social media driven financial news and analysis.
Post FOMC in early May we were basically at the same levels where we started this week.
Following Powell's uber-hawkish middle finger to investors worldwide the S&P closed at basically the same levels where we started this week.
And after Powell's uber-dovish loving embrace of investors, the S&P closed at 4080. A gigantic nothing burger of a market that has done nothing except increase sales of Xanax for an investor class that can't see the forest for the trees.
It took just two days of persistent selling this week for investors to forget the markets are doing absolutely nothing down here, ignorantly coming up with price targets in the low 3000-high 2000 range for where the S&P will bottom sometime in Q1/Q2.
This is a critical juncture.
As with every critical juncture in the markets, there is an abundance of information that is nothing other than misinformation and noise that is nearly impossible to separate from facts.
During times like this, the most basic of analysis, such as what I have presented above works.
Markets have done nothing since May, while everyone has spiraled into a suicidal economic analysis depressive schizophrenia the likes of which I have rarely witnessed in more than 20 years trading.
Upside remains extraordinary.
Guard your eyes and ears.
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