Dear New World Investor:
The S&P 500 ended the week and the quarter with its fourth positive day in a row and at a new record high. The Nasdaq and Russell 2000 also finished at records. The Dow Jones Industrial Average looks like it will join them on Monday.
The fractal dimension is fully recharged, so it is possible that another upleg is beginning. But I really, really doubt it.The VIX Fear & Greed Index closed Friday at 9.51, matching its mid-July low. As I’ve marked on the graphic, it is very hard for the S&P to go up when investors are that complacent:
Gold could not hold $1,292, so $1,256 is the next line in the sand. If the S&P 500 can keep defying gravity, we may see a retracement all the way down to our old friend $1,225. But I think it is far more likely that we get a snap-back rally that rips through $1,292, $1,306 and even $1,356. That will ring the bell for the new gold bull market.
Our re-entry into Bitcoin looks like it was well-timed. The steady upward pressure we saw in July and August is reemerging.Print This Post