I’ve related over the past few days what I interpreted as a precursor to a what used to be a relatively reliable signal in what’s known as technical analysis when looking at markets and charts. (Here are the links for those who may be new: Here and Here)
As I looked at the “markets” this AM, here’s what is currently taking place. To wit:
The above chart is of the S&P™ futures via the same 4-hour chart I used previously. It was taken at approximately 6:30AM ET.
As you can see the “market” has currently moved into, as well as, had a “close” within that box area I had highlighted using the open hours market.
Should this pattern be confirmed with it being reproduced during the open market? Then, as I stated previously: Caution should be paramount, for it signals a change. How much of a change? No one knows. But that’s irrelevant to the first order that should be – caution. What that means to you, is up to you to decide. Yet, here’s the bigger take-away if you will…
As I also stated: “Technical analysis has been rendered near useless when trying to garner information via the main indexes since the rise of HFT (high frequency trading) and central banking largesse. However, with that said, with the Fed. now reversing that largesse where there’s less money for the bots to manipulate as before, patterns that used to be reliable may become reliable once more.”
That’s the real tell-tale signal if it is. And that “signal” is ominous indeed.
© 2017 Mark St.Cyr