5:30 AM ET – I freely admit to not understanding what’s happening here in the market within my analytical framework. Is it just a short term anomaly? Or is something going on beneath the surface, beyond the view of the liquidity and technical data that I watch. Clearly, the market averages are deteriorating on the charts. But the “internal” technical data that I track has not been. And of course the Fed and Treasury driven liquidity picture remains wildly bullish in the short run.
So, I’m very concerned that something beneath the surface of what we can see is very wrong. Think Archegos, but orders of magnitude bigger.
I guess we’ll find out in the days ahead. I’m not accustomed to feeling like I don’t have a handle on it. It’s a very uncomfortable feeling.
For now, a 5 day cycle projection of 4095 on the ES hourly chart has been hit. However, in terms of sport and resistance, that level is in a no man’s land. 4075 looks like more of a target area for this move.
Indeed, when we zoom in on 30 minute bars, 4075 is the projection for the 2-3 day cycle.
This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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