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Apparently traders are taking the old Wall Street adage to heart. Sell Rosh Hashanah, buy Yom Kippur. So Happy New Year to all you Jewish bears out there, and other celebrants and non-celebrants alike. L’shana tovah.
At least this morning, we get to celebrate a weak opening. As for the rest of the day, this chart has your keys.
At 5:45 AM in New York, the ES futures were below the cyan line, which is the top of the megaphone pattern dating back to July 19. That opens some downside for a likely test of sport around 4521-24.
At that point, assuming they get there, then we get the proverbial, “We’ll see.” I see no indication currently that suggests they’ll break down further. They might, but I just don’t see a real tell that would make me overweight the odds of a breakdown. And even if it does break, then more sport is indicated at 4517. I don’t see that breaking, but I might need new glasses.
So color me skeptical. Again, we’ll see.
On the other hand, if they don’t fall further from here, and then climb back above the megaphone line, I have little doubt that we’d get another upside breakout.
And for your longer term listening and dining pleasure:
This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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