I was rather intrigued at the chart below, published over on John McClellan’s site. I can practically hear the snare drum in the background as we approach autumn.
This is from July when i was in the US Virgin Islands for a fencing tournament. The video starts off gloriously and then ends with a shot of my feet. So kind of a high to low thing. There is no audio, and I’m too considerate of my readers to put in some cheesey music.
After Tuesday’s trend up day the obvious target for a retracement on ES was a backtest of the weekly pivot and we have been seeing that tested over the last two days, repeatedly. So far bears haven’t managed to convert that to resistance, but they haven’t stopped trying, and they may still succeed. ES Sep 60min chart:
I’d like to do what I guess could be considered a flash sale of my latest book, which is described on the liner notes thus: “Making copious use of charts and basic technical analysis, Knight demonstrates how external shocks tend to create extreme reactions in the financial markets and how these predictable reactions provide opportunities for investors and traders to profit. Knight traverses five centuries of financial market history, from Tulipmania in the 1600s to the contemporary sovereign debt crisis. He looks at each event from the prism of the financial markets, examining the market climate prior to the event, during the event, and following the event.”
Well, my hope that prices would swan-dive away from the broken trendline are denied – – or at least delayed – – as equity prices clamor back toward the underbelly of the broken trendline. We see that here with the S&P 500 e-mini futures…….