You can see it clearly. The ES fucutures are near the upper bound of a trend going back to the beginning of January. A bunch of trendlines are clustered around 3920-25.
The uptrend channels are being tested, but so far, not violated. The number to watch in the 5 AM hour in New Yawk is around 3890. It’s rising at about 1 point per hour. To keep the trend intact it would need to be at 3895 or better at 10 AM ET.
OK, so maybe it won’t get there today. Or maybe it will.
After all, this is done.
Looking at a 30 minute bar chart, the 2-3 day cycle projection now looks 3910 on the S&P fucutures. That looks eminently doable once they clear resi…
Here’s a 2 hour bar chart again. If the oscillators turn up from this level, we could see another yooge upleg. The level to watch is 3835.
I give you a 2 hour bar chart for perspective. This is unquestionably, absitively, posolutely, the top of this move. I mean. You can tell. Right?
While this looks like a top, and the price has come down from 500 to 171, two longer moving averages are still trending upward.
The problem for HODLers is that the first MA is at 117, and the second is at 57.
As I explained here, we’re in a liquidity shortage, but one that will be lessened over the rest of this month.
As liquidity ebbs and flows, we’ll see wild volatility changes over the next 3-6 months.
This morning, it’s to the upside, but …
It’s a reverse Hotel California. You can leave, but you can never check in.
He who shorts what isn’t his’n must buy it back or go to prison.
Today is Fed Circus. The elephant parade.
What can we learn from this lesson in financial zoology?