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Melting Rainbows

This is a syndicated repost published with the permission of Slope of Hope – Technical Tools for Traders. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

My rainbow-based warnings about crypto seem to have been well-founded. As I am typing this on Thursday evening, the BTC futures are down thousands more dollars. Of course, this could be nothing more than yet another “buy the dip” opportunity as the prior arrows indicate.

One fact that might splash some water on that idea, however, is that Ethereum has already had, for lack of a better term, total rainbow failure. I won’t bother showing them here, but almost all my alt-coin charts have also experienced some kind of core breakdown. Totally solid bullish setups have fallen to pieces, such some items (like $OMG) falling well more than 50% in a matter of days.

The the “animal spirits” that moved crypto so high are rushing away, I sure wish someone would mention it to equities! At this very moment, the /ES is at yet another lifetime high, with a very clean breakout from its weeklong base.

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