Back on Oct 14th, I posted "Reversal day", and it was. Until we break below that day, that could have been the bottom. At a minimum I think the market rallies into March as I posted that day. This is because I knew the Republicans would refuse to raise the debt ceiling, and the government would be forced to spend savings.
Normally the Government sells bonds to raise funds and spend into the economy. This has the effect of pulling some money out of the economy creating savings / bank assets. The government then re-distributes this money from the savers to whatever the government wants.
Without debt issuance, and new cash entering the world markets without needing to pull money from savers.
A break above the red down line on a CLOSING basis will spark a continue uptrend, in my prediction, into March.
A break below the green dashed line indicates the party is over.
Good luck!
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