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Monday, February 22, 2021

Elliott Wave Update ~ 22 February 2021

The stock market is seemingly at a crossroads. The DJIA topped in a new intraday all-time high at the same time the broad-based Wilshire 5000 index finished the day in a bearish break of a key wave pivot seemingly confirming that a downtrend pattern has possibly started.  And the Nasdaq got hammered even harder. These are complete opposite outlooks. Yet that is to be expected at a historic all-time high situation. The hour is late. 

I have been watching and reading a lot about Mt. Everest expeditions lately as it is a subject that fascinates me. I cannot help but think the stock market is trading in the "death zone".  It cannot last forever.

The bond market continues to puke up yield as the amount of debt in the system is completely unfathomable. Everyone knows the debt will never be repaid.

Think about that statement again. Do you agree that the debt will never be repaid ever? Of course you do! So what is the endgame of that outcome?

Well that is the question. I happen to think the entire financial system is on the verge of a complete collapse.  The stock market should lead the way down.


 Finishing lower at the end of day is more bearish than not as it broke the previous low. 


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