The wonderful but all-too-brief drop we had this week has had, in retrospect, an absolutely perfect bounce. What’s remarkable – – and I want to stress this – – is that the trendlines I’m about to show were drawn well before the drop even took place.
So first there’s the ES………..
Take note how there were two specific drawn objects providing support. First was the blue trendline, and second was the gap (see red horizontal). The ES plunged to both of these and reversed almost to the penny. Incredible.
Similar support was offered to the NQ, but this time thanks to just one drawn object, and tilted in the opposite direction (since the NQ has been stronger in recent months).
So, neato, Tim, but what next? None of us can know for sure, but I’d at least like to offer a suggestion as to when this Trump-Is-Awesome-Again rally exhausts itself.