I had a plethora of inquiries the other day as to if my view of the “markets” had changed with the recent surge higher. The answer was: “No, at least not at this time.”
So far the “markets” appear, to my eye, still behaving in a manner that conforms to a very technical path.
Could it surge higher into the great beyond once again as it has done all these years? Of course it can, and the odds of it doing just that are in its favor.
However, on the flip side of that argument, is the argument I’ve been expressing, and it is this: These “markets” seem to be acting in a manner that implies things can no longer be taken as they have been over the years, for something (at least to those willing to actually look) has changed underneath the surface. And its causes and effects going forward, for even greater volatility, are increasing by the day, not decreasing. No matter what the so-called “smart crowd” tries to
sell tell anyone.
Below is a chart of the S&P 500™ Futures at about 7:30am ET this morning. The bars/candles represent 15 minute intervals. I have made a few notations which I believe are important, for this reason: At 8:30am ET or within the hour after this post the new Chair of The Federal Reserve, Jerome Powell will make his opening remarks to congress public. If for some reason the headline reading, HFT bots read something they do not like, things could go awry, in a hurry.
Does this mean it will? No one knows, they could do the exact opposite and force this “market” back into the stratosphere. But watching for any reactions to this very important first appearance to a new Fed. Chair is imperative for anyone in business.
If the “markets” suddenly falter and reach the points I have highlighted? As always, caution should be on-the-front-foot, as they say. Everything I have expressed in this conversation when I first started it still stands, even as we’ve, once again, reached these higher levels. Below is today’s “picture.” To wit:
As always, we shall see. But this time, it shouldn’t be long.
© 2018 Mark St.Cyr