A Bit Too Text Book

With the “markets” now bouncing higher in what many are describing as the “See.. See!! BTFD (buy the f’n dip) is still the only way!!!”

Maybe it is, maybe it isn’t. As always we shall see. All I’m going to add to this for the moment (I’ll discuss this and much more on today’s show) is the following chart which is the S&P 500™ futures contract (aka E-Minis) as of this writing at around 8:30AM EST. To wit:

(Chart Source)

For those that don’t fully understand the technicals being professed via the above, I’ll be as succinct as I can…

Both the drop from the now logged “All Time Highs,” the size and scope of the decline to both where and when, and now the fury of the bounce in both time and scale, then to stop precisely at what is known as a high signalling “Fibonacci level” and hit it like a brick wall and stop?

This is precisely the same type of example or movement one would see in a manual to learn technical analysis. i.e., to show a “text book example” of market moves that signal the possibility for faking everyone out thinking a bottom is in – then it falls, again, only faster, further and far more damaging.

Will it happen? No one knows. But the odds attributed to this type of signalling are so high – that’s why it’s called a “text book.”

Now, here’s another issue I would like you to consider.

If this is such a “text book example” as the saying goes, then that’s precisely what you would assume to see if the only one’s playing in “the markets” are the machines. Would you not? Or said differently…

If you need to think like a machine, because it’s those very same machines that are now in control?

You may have just read their hand before they had a chance to take yours.

Again, as always, we shall see.

© 2022 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.