Good Morning:

• Until otherwise resolved, the stock market (as measured by the S&P 500 Index) is in a trading range bounded to the north by 4135 and 4065. Balance Rules apply.
• Fed Governor Brainerd (now leaving to be President Orwell’s economic adviser) triggered yesterday’s late-day sell-off. 
• Inflation and Fed policy still rule the day.
• The Fed does not seem to favor higher stock prices, so they are talking the market down.
• Anyway, the 20-week cycle trough is due and may be underway.
• The bears are looking for a crash, and they have their arguments.
• The bulls are looking for a muted 20-week cycle correction due to the market’s strength from the October 2022 low.
• And though the landscape is a bit distorted due to monthly options expiration today, the market has moved sideways because neither the bulls nor the bears have prevailed with their narratives.
• Our Zeus Algorithm (formerly the Navigator II) has been in a sell signal since 2/3, followed by our Zeus Algorithm (formerly the Navigator) on 2/8. Our Janus Algorithm issued a final sell signal on 2/13
• The next Zeus turn date is on 2/23.

Have a great weekend!

A.F. Thornton