I don’t know whether many of you are familiar with Coleridge’s poem ‘Kubla Khan’, but he told a lovely story about why this (wonderful) poem is clearly only a fragment of what should have been a larger work. His story was that he woke up from a (polite cough) vivid dream with the poem complete in his mind, and wrote down what remains as soon as he woke up. While he was still writing there was a knock on the door and he was distracted by a man from Porlock who kept him occupied for an hour sorting out something minor, and when he at last returned to his room he found that he had forgotten most of the remainder of the poem. The story may or may not be true but it’s a great story, and we have all met our own men from Porlock on a regular basis I’m sure.
It’s been that kind of day for me and I’ve been tied up by various things & I apologise for this very late post, though the charts are still relevant, and it was a reasonable inference from my post yesterday that today was likely to be dull on SPX/ES, and so it has worked out. I’m posting the ES, NQ & TF I posted for theartofchart.net members today as I haven’t have a chance to redo the SPX charts, and they give a good insight into how close a top looks on all three indexes here, though I’m expecting at least TF/RUT to make a higher high next week, with a higher high (& new ATH) less likely but still probable on ES/SPX, and possible but least likely on NQ/NDX. ES Sep 60min chart:
NQ Sep 60min chart:
TF Sep 60min chart:
Last Sunday Stan was talking on our public Chart Chat about the high window on SPX opening on Sunday 14th August with the middle of that high window on Monday 22nd August. If you haven’t seen that yet the recording is posted on this page here. That’s why I was doubtful about the retracement getting that far on Wednesday morning & that played out as I expected of course. We did a free educational webinar on these cycle windows yesterday and, if you’d like to see that, the recording is on the same page. If you are trading precious metals you should really have a look at that recording as I was illustrating the usefulness of these windows with a look at the gold charts. I think you might find that section well worth watching.
Everyone have a great weekend. 🙂