Using a reference to a song that will date me faster than counting tree rings, I offer the following to possibly bolster my arguments regarding where we are, and far more importantly, where we might be heading.
Today (Tuesday) saw the “markets” catapult themselves back into the stratosphere looking to gain enough momentum to ultimately reach black sky territory, aka “Newer, never before seen in human history, higher highs.”
Will they succeed? It’s always possible, however, what I would like to point your attention to on the following annotated chart, is the price action that transpired.
Just as the headline alludes, today was a carbon copy of November 29th differing only in size. Think of it using the song analogy as singing the same verse for a second time, only this time, it was shouted rather than sung.
What was also quite interesting is that, once again, once it reached its apex – it was dead in the water and slowly sank lower all afternoon long, just as it did prior. Although, unlike prior, today saw a buying frenzy in the last four minutes spiking it up some 20 handles. Usually this type of price action is attributed to someone (or program) on the wrong side and needs to get flat (i.e., holding no position overnight) before the market closes. Reading into it (though many try) one way or another makes coin flipping look down right scientific in comparison. But I digress.
Another point of interest, from a technical perspective, is that the rise and stopping point for that apex just happened to coincide with what is known as a significant Fibonacci level for retracement. In other words: It has all the appearances that once the “Buy Bots” hit their programming metrics (aka crushing any Shorts) – they shutdown and were only able to muster ping ponging back and forth nibbling away at each other to remain elevated.
Below is that newly annotated chart. To wit:
As always where we go from here is anyone’s guess. But I’ve put mine on the record and as always…
We shall see.
© 2021 Mark St.Cyr
Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.