ES Morning Update January 5th 2022

We got the start of a rally yesterday but it did not hold and after opening up 20 points went negative 20 points before recovering to close flat by the end of the day. This has all the signs and warnings of distribution by the smart money. How long can this go on is the question? My upside target is 485.00 on the SPY or about 4868.32 on the SPX, but I really having my doubt on if it’s going to get there or not.

The Nasdaq just keeps making lower highs and that’s another sign that the overall market is topping and will rollover soon. Trying to nail the exact day it rolls over is nearly impossible but I’m patiently waiting for that last strong push up as it still should happen. Bulls are running out of time though and need to get the move up soon as the Seasonality for January turns bearish next week. Not much else to add here as I’ve covered it all in the most recent posts.

It’s kinda like a weather man who’s on day 7 of perfect sunny days with no rain in sight or clouds in the sky. He’s (or she) has covered about everything they can about that sunny day and ran out of things to say. They are waiting for some rain to show up to have something to talk about and I’m wait for the last squeeze up so I can talk about the decline. Have a blessed day.