Many of you have heard me say things like:
This pattern from a technical analysis (TA) viewpoint is doing precisely what it implies only it’s a larger representation of what happens on a daily basis, multiple times a day in many cases. It’s only the size and scale that fools the untrained eye and catches them off-guard.
Today is a perfect example of just that. To wit:
The above is a chart of today’s opening of the day session of the S&P 500™. Now here’s another, again, to wit:
As you’ll notice the structure and the subsequent bounce up is of the same size and scope as the top. The only difference is: The top is the last three days. The other is the last three months. Remember what happened next, as I implied would? For those that don’t remember, the upper depicts precisely that (a sudden drop out-of-the-blue) with today’s open. What has transpired so far today as I type this at about 12:00pm ET? Let’s see shall we? Again, to wit:
The above implies if the same type of movements happened in the larger pattern. Do I need to say more?
As always, we shall see.
© 2020 Mark St.Cyr