That’s right, not Roll Over Beethoven. I’ve used that too many times through the years. In honor of my 7 months of residency in Warsaw, just ended, I decided to honor the great Polish composer instead, with a slight misspelling in recognition of current market conditions.
Having dispensed with that ridiculous explanation, let us now move on to the cacophonous concerto of the stock market and various other matters of great import, but little impact.
As you can see from the zoomed out 5 hour bar chart on the ES S&P Futures, the Big Giant Head pattern has grown a pigtail on the side of its head. Whether it is the left side, the right side, or the wrong side, is a matter of your chart perspective. I will leave that to you. Because here, we are only interested in the short term intraday or two vibrations. For the longer term outlook- Beware! The Market Has Followed My Script
What we can see from this chart is that the Big Giant Head has become part of a big triangle pattern. Triangles by their nature are inconclusive patterns, implying neither upside nor downside breakouts. Often, the just trickle out the tip. But if they do break out, one way or the other, particularly around 3/4 or less of the way to the tip, they usually trigger a big move. So be prepared for that.
One thing is for sure. All of the gyrations and fireworks in recent days have not been able to penetrate the vast area of overhead resistance which I believe is a bull market top, and bear market beginning.
When we zoom in to our usual hourly view, we see both the Big Giant Head triangulating, and a smaller triangle within that triangle. It looks poised to head lower. If it gets below 4430, I think we’ll be off to the races on the downside. It would need to get above 4490 to trigger an upside breakout all the way to 4515. I suspect that there’s a lot of supply up above waiting to clobber any rally attempt.
As for the liquidity side get the latest here:
Fed Gets the Inflation It Wanted, But Wait There’s More!
And I’ve been liking gold, and the mining stocks more and more in the past couple of weeks.
Gold Set For Breakout, Mining Picks Turn Green
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