I was asked by a colleague my thoughts on the latest thrust of recovery in the “markets” and the above headline was pretty much the verbatim response I gave.
Where it goes from here is anyone’s guess, however, with that said what I will leave you with is the following chart as of around 2:15pm EST today (Wednesday). To wit:
As some may notice it’s a continuation of the same chart I’ve been using (albeit with a few mods) for a while now. For those that aren’t that “technically savvy” and are wondering what the shaded areas represent and why they’re there, what they represent are very common Fibonacci levels of retracement. The take away I’m implying with all of this, is this…
As you can see we’re right back where we were that I originally pointed out earlier as an area of importance, along with, we’re now topping out precisely within it – and – hit that .786% line and immediately reversed.
So, the thinking goes: If it’s all doing what some may call “adhering to text book technicals” that implies should that lower boundary containing the “welcome back” moniker gets pierced once again with any real impetus? Let’s just say we could be looking at a real “Watch out below!” moment.
As always, we shall see. But that’s what I’m watching for those that want to know.
© 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.