Before I went on my pre-opening walk with my two larger dogs, I took a couple of snapshots (I am typing this nearly an hour later, well after the opening bell). My observation was, and continues to be, that the line at 2825 – – which for half a year represented the iron wall containing the bulls – – was where the battles were continuing to be fought.
Even to a haggard chartist like me, I am stunned at the power of this line. Take note, on the left, of the clear repulsion at this level. Further take note of how much pushing and shoving is taking place at the exact same spot over the past two weeks, as the bulls and bears try to wrest control from each other. Fascinating.
Looking closer, you can see the recent action more clearly. About halfway along this chart, the breakout occurred, and the bulls ran with that baton, unchallenged. Last Friday, however, shoved prices back to the bears’ side, and now, it’s anyone’s game.
If things keep going like this, we might have to endure another barrage of Trade Talks Are Going Well tweets, even though it seems to me just about everyone has forgotten about the so-called trade war and the supposed trade deal talks.