Everyone knows the story of the story of the race between the tortoise and the hare, but what if the race had been between the tortoise and another tortoise? Which tortoise would have won the race? The answer is that no-one would know, as no-one would have remained awake until the end of the race. Moving sideways into quantum mechanics for a moment, one could then argue that in the absence of an observer, with the arguable exception of the tortoises, that neither tortoise won the race, if indeed there had been a race at all.
Where am I going with this? I’m just observing that the market tape has been impressively dull lately, and that it will be nice when things speed up a bit, at the end of this seemingly endless topping process. In that regard though, things are at least moving along a little.
On the ES chart the double top target at 2366.25 from Thursday morning was eventually reached today after an epic decline of twelve handles or so. ES Jun 60min chart:
On the SPX hourly chart rising wedge support has been tested again, and has broken slightly. Before bears get too excited I’d note that this means we are now looking for a topping pattern, and that may involve a retest of the all time high if the pattern if that pattern is a double top, which is the case about 70% of the time. SPX 60min chart:
The daily middle band was tested at the lows today and is still holding so far. SPX daily chart:
How will this gripping drama end? Can anyone stay awake long enough to find out? Only time will tell