Below is a chart of the S&P 500™ just after the open at about 10am ET. It is represented via 15 minute candles/bars.
Remember: If someone tells you they “know” what happens next – don’t just walk, but run – and fast! So with that said…
What has caught my eye is there is what is described in technical analysis lingo as an “ending diagonal.” The reason why these types of patterns catch the eye as they say is because they usually have more “predictive power” for lack of a better term after what are also known as “extreme moves.”
And to say the recent run up to new never before seen highs in the history of mankind, as most of the same companies making up said market are making either lower lows never mind new highs isn’t “extreme” enough to warrant at the least an eye brow rise? I don’t know what will.
And yes, that’s not a misstatement. Or said differently, welcome to your central bank fueled fantasy of “market” logic.
So with that said here’s the aforementioned chart. To wit:
Another way to describe what these types of indicators suggest in image form show what one could consider as “A strong conviction to buy – loosely held.”
As always, we shall see.
© 2019 Mark St.Cyr