{"id":8486,"date":"2017-02-27T16:36:12","date_gmt":"2017-02-27T16:36:12","guid":{"rendered":"http:\/\/www.t3live.com\/blog\/?p=8486"},"modified":"2017-02-27T21:01:23","modified_gmt":"2017-02-27T21:01:23","slug":"resistance-and-support-ahead-of-trumps-big-speech","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2017\/02\/27\/resistance-and-support-ahead-of-trumps-big-speech\/","title":{"rendered":"Resistance and Support Ahead of Trump’s Big Speech"},"content":{"rendered":"

The Russell 2000<\/strong> is popping 0.6% today while the major averages are\u00a0only \u00a0barely green.<\/p>\n

On Friday, it nearly tested that descending trendline from which the recent little rally erupted.<\/p>\n

\"\"<\/p>\n

Has resistance become support?<\/p>\n

I assume if the Russell can hold this 1380-1400 range, I assume the bears don't stand much chance of finally breaking the bull.<\/p>\n

Looking ahead, the next major potential catalyst is President Trump's address of Congress tomorrow.<\/p>\n

The big question is how much will he detail will he offer?<\/p>\n

Trump won the election on sweeping generalities, but there's a lot of demand on him to get down to brass tacks.<\/p>\n

Since Trump is a typical CEO (long on broad visions, short on the details that get left to underlings), expectations are extraordinarily low in this regard.<\/p>\n

However, I would not be so quick to count him out completely.<\/p>\n

From about August 2016 until the election in November 2017, Trump cut through the competition like a hot chainsaw through butter.<\/p>\n

He was the hammer for a while… and now he's the nail.<\/p>\n

For the past month or so, he's been hammered relentlessly and is in need of a win.<\/p>\n

The bar is low.<\/p>\n

And perhaps by offering even minimal ‘real' information on tax reform, infrastructure spending, and health care, markets may respond very favorably.<\/p>\n

Why?<\/p>\n

Because they're not expecting much.<\/p>\n

It's the equivalent of a company heading into earnings after getting a bunch of downgrades and estimate cuts — it doesn't take much positive news to start a countertrend rally.<\/p>\n

There's also the possibility that Trump offers significant details to confound his critics.<\/p>\n

And if indeed Trump does deliver, the Russell<\/strong> may really rip.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Russell 2000 is popping 0.6% today while the major averages are\u00a0only \u00a0barely green. On Friday, it nearly tested that descending trendline from which the recent little rally erupted. Has resistance become support? I assume if the Russell can hold this 1380-1400 range, I assume the bears don’t stand much chance of finally breaking the bull. Looking ahead, the next major potential catalyst is President Trump’s address of Congress tomorrow. The big question is how much will he detail will he offer? Trump won the election on sweeping generalities, but there’s a lot of demand on him to get down to brass tacks. Since Trump is a typical CEO (long on broad visions, short on the details that get left to underlings), expectations are extraordinarily low in this regard. However, I would not be so quick to count him out completely. From about August 2016 until the election in November 2017, Trump cut through the competition like a hot chainsaw through butter. He was the hammer for a while… and now he’s the nail. For the past month or so, he’s been hammered relentlessly and is in need of a win. The bar is low. And perhaps by offering even minimal ‘real’ information on tax reform, infrastructure spending, and health care, markets may respond very favorably. Why? Because they’re not expecting much. It’s the equivalent of a company heading into earnings after getting a bunch of downgrades and estimate cuts — it doesn’t take much positive news to start a countertrend rally. There’s also the possibility that Trump offers significant details to confound his critics. And if indeed Trump does deliver, the Russell may really rip.<\/p>\n","protected":false},"author":2,"featured_media":4100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[268,496,50],"class_list":["post-8486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-donald-trump","tag-russell-2000","tag-technical-analysis"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=8486"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8486\/revisions"}],"predecessor-version":[{"id":8494,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8486\/revisions\/8494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/4100"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=8486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=8486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=8486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}