On both my show and elsewhere I have been stating that this week is a week that may be very important for signaling and clues as to where we may go from here both in “markets,” as well as what it may portend for business. I offer the following for further considerations.
On Thursday I posted a chart and some notations that I felt were important and the subsequent clues that may be forthcoming. It seems the “market” was intent on doing everything in its power to hoist a “middle digit” to that hypothesis and push ever higher still. And yes, even during the “overnight” sessions.
But that’s why I’m initiating the following, because the overnight may be where the true “tell” is. But first, I’ve updated the original chart and its annotations as to try to describe what may have been the reasons behind the moves. Remember: all conjecture of course. To wit:
As you can see on the above (where the #3 arrow points) is where I was making the case for watching and movements that may be negative. i.e., “Down”
Subsequently it had not happened as that pattern suggested, however, so too did another pattern which I labeled “#1.” I’ve annotated the above with a possible thesis. I feel that if it plays out regardless of how the original pattern morphed or failed keeps the observation front-of-mind mode.
The reasoning for this is what has happened in the overnight session. (Remember how I keep saying you have to watch the overnight as Asia is open?) A funny thing has emerged that may help bolster my original thoughts. Here’s what I mean, again, to wit:
The above chart depicts the futures “market” at around 8:45ish ET. The original pattern I observed in the “Cash” markets seems to now have evolved in the overnight. It’s interesting, because as this pattern seems to be resolving as implied (i.e., negative) – the current level depicted above would catapult the 9:30 open even higher. (actually much higher!)
So now which is correct because we have two originally developing and implying the same, and a third (aka “Diamond” on top chart) resolving uncharacteristically. i.e., UP. Hint: Welcome to “Quad Witching.”
So where to from here? As always, no one knows, but I have annotated both charts with respective areas I myself will be watching for possible confirmation that something may be going awry to the entire “bull” narrative.
As always, we shall see, but at least we have something to look more precisely at for further clues.
© 2018 Mark St.Cyr