[Create Your Own Opinion – Technical Indicators Used – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]
Much of our analysis has leaned toward what the Fed has been doing to manipulate (through indirect purchases of equities) markets higher. With the USD strength, revenue and earnings should get crushed in Q1 and guidance will be weak. Typically, companies provide earnings confessionals (adjustments) to the quarter end. We have seen Intel do this (down 4% after the announcement) and no one else. Next week could be the launch of these confessionals. The USD pullback is unlikely to last - it's taking a breather and resume upside next week. Downside pressure is at extremes. Meaningless tripe from Yellen this week was just the trigger for her coordinated jack hammering of the market higher - nothing else. GDP guidance is falling fast too. Many Chinese firms report this coming week in Hong Kong - we expect lots of lying. However, we should fall hard this week based on the former.