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On the 1st SPY made a lower high at 137.99 vs the previous day's 138.19. This much was enough the kick in a downtrend. ES_H made an almost equal high, shy by only 25 cents vs the leap's 1377.25. We were closing in on the uptrend line rapidly and ended Friday in a triangle, with the first close below the red trendline. The triangle being a continuation pattern, the downside was in favor. I posted this image Sunday night:
Bizarre as it may sound, this is what happened in the stock market last week. Like a dog chasing the tail and going round and round. When the index fell in the 1st part of week, remaining bears started making noise. ZH was painting the town red with the news of coming Eurocalypse. And I was telling readers to wait and not to front run. I said repeatedly that trend change is not confirmed and whipsaw is expected. Technically the market was oversold to start with. Again, as absurd it may sound that while the prices were making higher high, the market was oversold, it was true. How can we expect a decent sell-off in such a situation? And not to forget, the cycles were showing a top due by March 6-9. Last I said, may be Friday, March 9 will be the fade date.