Below is a chart of the S&P 500™ futures represented via 15 minute bars/candles as I type this at approximately 8:00pm EDT. The chart is pretty self-explanatory, for I made notations that I feel even a novice or rudimentary chart viewer can interpret.
What has caught my eye is the current movements after the run up into Friday’s close and all the different expiry events that seemed to have helped move it up as high as it did, as in, never before seen in human history highs.
But now that all the “easy fuel” that was used to further manipulate a near volume-less run (in regards to prior historic equivalents, of course) the “market” is now showing its hangover effects – and they are not pretty.
To note, as I’ve said many times prior, there are times one pattern emerges then either fails or doesn’t play out as originally gamed, but then in a larger or longer time pattern the original interpretation may be correct, yet just needs more time to play out, consequently resulting in an even more extreme move. I think this is what we may be looking at here. To wit:
I’ve noted on the chart the initial thoughts with the word “Remember…” the original thought can be found here.
In that note I stated that it was the 2850 area that was needed to get above and hold to go up further. And that’s precisely what happened. Now it seems that exact area is once again in the “sights” as they say, and means ever the more, because of the now longer time duration.
What also caught my eye was how this lined up when I used another indicator type drawing, and low and behold one of the main numbers that are text book to watch for fall almost precisely on that exact level, giving it even more importance from a technical perspective.
Does this mean it will, won’t or something else? Could be, then again, no one knows. But at least you now have something to watch for and judge for yourselves. For this is what is catching my eye at this time and I think it’s worth watching closely, especially where we are with the G-20 and more.
My view is if that first level doesn’t hold and there is meaningful follow through, as in consistent, sustained selling pressure. Then it’s all about that bottom line and should that not hold?
Things begin to get very interesting, to say the least, indeed.
As always, we shall see.
© 2019 Mark St.Cyr