From Diamond Hands to a Cubic Zirconia Fumble?
The above headline is in regards to the latest ongoing developments I’ve been watching and postulating on via my technical analysis acumen, using the latest price movements of the S&P 500™ and its machinations tracing out what’s known as a “diamond” pattern. So far it has played out in about as textbook a fashion that one could propose. But now there’s the other side of that “textbook” example called – failure.
Now this is where this all gets interesting, from a lot of different angles and possibilities.
As I noted in my original arguments I stated the following. To wit:
The only thing to watch for now is if this new “horse race” continues or, stumbles, breaks a leg, and is sent packing to the “glue factory.” It’s all still a very real possibility should the debt ceiling talks break down or other such entanglement.“Diamond Hands Follow Up” May 18, 2023
Here’s the chart I posted regarding that comment, again, to wit:
Here’s what has happened since…
The above speaks for itself as I’ve notated it showing what has happened, and what to watch for next. For those that want to know what they should be focusing on as it pertains to both the health of the “markets” as well as the entire economy. It’s now right there in front of you.
Could it resolve back up and continue into newer heights? Sure. However…
What the above is signaling in another textbook form is this…
If it should break down into that lower circle with any gusto. The odds for it to continue lower (aka much lower) are exponentially more probable than it going higher. Again, it’s an odds thing, not a surety. And just so you understand that statement you must understand the following:
This “market” is at its current heights because it has been beating 99.9 to .01 odds that argue it should be lower (both technically and fundamentally) at a 100% winning streak.
But it is what is it – till it ain’t.
© 2023 Mark St.Cyr
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