MARKET ENVIRONMENT: by Woody Dorsey. Sentiment is coming in today @ 83% Bullish. Note the tendency for very low sentiment (1% ish) has been followed by huge rallies for a day or so only to fail again. This is Bear Market behavior. War will be waged for some time. This fits with the previously profiled risk of a Hyperinflation. I had been looking, some weeks ago, at the 3/12ish time area for a potential trading low. Now, as noted, I am even seeing 4/4ish as a final trading time target. So, give it more time. Let the Hyperinflation keep Hyperinflating. Wars never end well and they never end on anyone’s expected time frame.
NEAR TERM: As expected: “This is a Risk Off market. March may bring a catharsis. Spastic and erratic weakness is still possible near term.” Stocks need further formation before believable upside.
INTERIM TERM: An initial Interim low is nearing but not yet definitive. This period of weakness may get mopped up over the next few weeks. That would allow for an expected April rally or maybe later. There are some Summer Time targets. Wars never end well and 2022 will not end well. The degree of price weakness which has already occurred, signals that a larger corrective process may last for some time (years.)
DORSEY MARKET SENTIMENT: Bullish Sentiment had been overly optimistic for a long, long, too long, time. Sentiment is trying to discover what degree of sentiment is required to achieve a definite interim low. This sentiment low will still take some time to clarify.
MARKET SUMMARY: Equity Markets remain under real pressure. Jerome didn’t know it was going to turn into a Hyperinflation. He has admitted he made a mistake. But is he still making the same one? Don’t Deny Hyperinflation. Volatility remains in charge. Enjoy it. War never ends well and 2022 won’t either.
There were small bearish divergences in place on the 15’s as the 4300 resistance came into play and that was all the bears needed to drive prices lower today. Don’t become complacent on either side!
Summary: Mr. Market has given both the bulls/bears a chance to make some quick cash this week. News is bad-economy is bad-fed is raising rates, would lead to anyone just looking lower. Don’t do that! It is when the master planners try and squeeze their way out of harms way. 4160 may be a magnet, but the point I am making–look both ways and stay open minded. This market is moving fast! G
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