Earlier today I posted the following chart showing what I was watching. To wit:
Here’s what transpired later and then finished the day. Again, to wit:
So, do you think that “tripwire” level meant anything to the machines, hmmmm? And – yes, that’s near just as much of a rally, in a bit more than an hour, than what took all day yesterday to develop. The reason behind it though is probably pretty much the same. i.e., very large year end pension type rebalancing orders in a very thin “market.”
As I was perusing many of the so-called “mainstream financial/business media outlets” I couldn’t help but laugh at how many differing ways I heard either a guest, or a host try to hedge every word they could as to try and cover their derrières for any potential backsliding as they all sheepishly implied “This is the start of the next bull run!” It was more comedic than watching a comedy channel.
Does it mean they’re wrong? No one knows, but it is in that light I would like you to view the next chart as to remember where we currently are, in relation to what is currently happening, for a bit of perspective. Again, to wit:
There’s a lot of here-to-there that would need to be made up by tomorrow just to get back to where we were only weeks ago. You remember where that was, don’t you? For those that don’t remember I’ll just remind you with the following…
That would be way up there marked as “you were here” and was the last time the so-called “smart-crowd” was telling everyone the same thing. i.e., “This bull run has plenty of room to run into year end!”
Maybe they’re right this time? As always, we shall see. However, as far as what I’m still focusing on? The levels I highlighted originally, they are all still valid and still in-play. Even after this week.
© 2018 Mark St.Cyr