As I type this the “markets” have been open for approximately 15 minutes or so. (e.g., U.S.) It appears that the news of some form of trade war reprieve has been reached for the time being. The “market” has since gapped up quite forcefully.
However, with that said, there has been one index I’ve been monitoring quite closely because of its reflection to smaller, more U.S. centric businesses. e.g., Russell 2000™ (RUT).
In particular the RUT has been the only index to hit new lifetime highs as the other indexes, despite “fantastic” earnings and more, can’t. The RUT is very, very, very (did I say very?) $Dollar sensitive in the exact opposite way one thinks when imagining global concerns. i.e., The stronger the $Dollar the better for businesses that focus on business inside the U.S., as opposed to those that have to worry about $Dollar strength hindering business abroad.
So it was when the “market” opened that I spotted a very clear technical pattern that deserves watching, for the implications are onerous if it plays out in the ways it’s known for.
It doesn’t matter if you’re not some technically inclined chart reader or really don’t understand the whole “charts” thing. I do, and I can hold my own with the very best in the business. All one needs to do is watch for if what I’ve noted on the following chart comes to bear. If it does? All I’ll say again is – concern for any sudden upheavals should be paramount in ones planning.
So here’s what I’m talking about. To wit:
The above is the RUT as of about 9:45am EST. The Bars/candles represent 15 minute intervals. If the “market” were to fall and closing prices appear within the box (or levels per se) I tinted above within the next few days or so (today would really cause concern) these “markets” could be gearing up for another move very similar to what happened just last February.
You remember last Feb. don’t you? If you don’t let me jog your memory for a moment.
In January as the “markets” vaulted ever higher to once again lifetime prints the mainstream business/financial media et al declared: It’s all upside from here. Except yours truly. It was during that period that I made the same type of warning as I am now – followed by the derision of many in that same media.
Then February happened: It consisted of two events. The first was setting the #2 largest single day point loss in the “markets” history. The second?
It then set the largest, as in #1.
As always, we shall see.
© 2018 Mark St.Cyr