US stocks came in a bit shaky this morning, but managed to rally back up close to unchanged during the day.

Alas, it was not to be, and stocks sold off in the afternoon, going out on the close at or near to their lows.

This is the 50% retracement area here from the recent big decline last Monday.

Stocks need to own this level, and start climbing back up to at least retest the prior big support area that had formed the bottom of the longer trading range.

If we get too sharp a rally higher that fails, let’s say around a Fed rate hike in September or October, then it might be Katy-Bar-The-Door time, because a rally that fails after a steep decline in a long trend rally to these kinds of lofty heights is, in the words of classic technical analysis, ‘bad news.’

But lots of things can happen between now and the end of the year.

I would feel better if I thought that the powers-that-be were doing anything close to some real solutions for the economy, and not just playing extend and pretend with an unsustainable quiet riot of upper crust looting and malfeasance.

But that is not in the cards it seems.  And most things tend to fill one with concern.

But nevertheless, let’s see what happens.

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Click on picture to enlarge

Click on picture to enlarge

Click on picture to enlarge