'Squirrels' Everywhere - Distract, Distract, Distract | WHAT REALLY HAPPENED


'Squirrels' Everywhere - Distract, Distract, Distract

I had suggested last week that a retest of support at 2800 would be a possibility as the market had gotten very overbought as it approached the January highs.

“With moving averages rising, this shifts Pathway #2a and #2b further out into the August and September time frames. The potential for a correction back to support before a second attempt at all-time highs would align with normal seasonal weakness heading into the Fall.

As shown in the updated “pathway chart” above, the market did indeed attempt to test all-time highs in the market. But, as I noted, the overbought condition provided the fuel for a correction given the right catalyst.

That catalyst appeared on Friday as the Lira plunged and Turkey edged closer to an economic crisis.”

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