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We Closed the Gap... Now What?

Stocks closed the gap I mentioned on Thursday (the red rectangle), they are now consolidating before their next move.

 

 

What If There Was No Money?

Breadth which leads stocks, suggests it will be a move higher, probably to the 2,800-3,000 range on the S&P 500 (blue rectangle).

 

After that comes the BIG drop…. Not because the US is in trouble necessarily, but because China is in REALLY BIG trouble.

At the end of the day, the US economy might hold up, but there is no way China can implode without hurting US stocks in a significant way. Copper and China's stock market tell us that reality is much lower than most expect.

 

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