Bouncy Bouncy Fun Fun Fun

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What a surprise, eh?

Up until this morning, about 40 minutes into the trading day, it seemed that bad economic data actually mattered again.

This morning’s ISM report sucked out loud, and the market responded appropriately by selling off hard. And then, based on absolutely no news whatever (cough cough Federal Reserve buying stocks cough cough) it went ripping higher and closed at the highs of the day.

I was looking at my longer-term ES chart, and the bounce made total sense. Take a look at that horizontal, which I drew a long while ago (ahem, not this morning). There is a Mt. Everest of overhead supply at this point.

If you didn’t see it already, I would suggest you check out my Key Levels post. I made the same arguments on my show today.

Unrelated to any of the above, I thought I’d mentioned H&R Block (HRB) has a massive diamond topping pattern complete.

I have to say, I should have known today would be totally bizarre. I started the day with a huge spider on my screen (and, as with all spiders, I gently took him to my back yard so he could live a happy spider life). Tomorrow morning, remember, is the jobs report, so action during the day should be a doozy.