Alrighty - Here is my best take on the markets. The Darvis Box broke to the upside and we've had a nice little run up to 3100 S&P. You'll note that we have profit taking and intraday consolidation taking place yet we've bounced back wave after wave since hitting those highs. That action has created a bull flag at this point seeking confirmation.

The Impeachment hearings are the driver for the markets short term. You could see the low open yesterday immediately jump once the opening Schiff salvo fell flat. Then a rally started when Nunes served up some laser bombs on the entire proceeding. Markets pushed back higher most of the day as the two witnesses looked more like Beavis and Butthead than some aces in the hole.

Pelosi has a disastrous press conference and embarrassingly tosses out one liners to know where. Then abruptly answers a reporters question with "We have not decided whether to even Impeach or not - that's what the inquiry seeks to establish". Markets moved off their lows within 3 minutes of that gem today.

So here's what is going to happen. If we see no absolute dynamite tomorrow from the circus a growing consensus says Nancy will pull the plug on the whole thing. That would be a catalyst for 3200+ my friends and THAT's when we would be exiting the markets for the year.

So hedge on the up periods knowing that you WANT those to get crushed due to that decision coming to fruition - but you have your silver bullet to offset initial drop and make strategic moves if something tangible does come forward.

Oh and as further indication of just how embarrassing this has been for the Democrats. Pelosi had to announce a distraction by using the USMCA they've previously shown zero interest in today.