In February the S&P 500 hit a new all-time high and ended the month 3.72% higher. Also, the Dow Jones and Nasdaq hit new all-time highs and ended 4.77% and 3.78%. The 2400 point target was hit in the S&P 500. The acceleration of the stock markets, that we are seeing now, is exactly what we were looking for. Last Wednesday we saw a huge short squeeze in the market, which made the S&P 500 hit 2400 points. A short squeeze means the people that are short need to cover their shorts, to stop their losses, because of a margin call for example. This new 2400 point record was set just a month after we predicted the 2300 points level to get crushed.
Normally the huge short squeeze at the end of an acceleration in stocks marks the top of the market. In most cases, the top will be retested, and if it holds, then there is still a good chance this is the top for the coming years. The market prices in a 95% chance at the moment that the FED will raise interest rates the 15th of March. That will be the 3rd rate hike and that means we are very deep in the danger zone. This could be the start of the first wave down of 20-30% before the FED will try to clean up the mess again that they created themselves.