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Market technicians often use math in their work. Fartcalls are one aspect of that. They are repeating patterns in different time frames, usually after meals where fiber nachos are consumed.
Here we see such a chart, and wonder if, on the repetition of this fartcall, will things come out the same? Another solid dropping as liquidity dries up?
Here’s how it looks on the 5 hour bars.
I recognize that the subtlety of this pattern may be too arcane to easily recognize, so let’s zoom in on the usual one hour bars.
We see that the biggest downtrends remain intact, but so does the 2 day uptrend that was beginning overnight yesterday when I made the “Beautiful Bottom” call at around 4:30 in the morning New York time. It was as obvious as those things get. Now we have a moment of truth where we find out whether this shortest of uptrends can hang on, or whether it goes the way of the right ears on the two previous face plant fartcalls.
Here at 11 AM in Europe, and 5 AM in NY, we’re seeing a sport line convergence around 4245-50 being tested. If it breaks, the bears will have the ball. If it holds, bulls are still in charge.
Looking ahead to the first half hour of regular New York trading, 4245 will still be the key sport level. Between there and 4280 is the battle zone where the outcome will be uncertain. Above 4280, bulls will be in the driver’s seat but it won’t be easy going. There are multiple resistance lines every 10-20 points overhead that should be difficult to penetrate.
Meanwhile, the big picture:
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