Over the course of the night, the ES did nothing more than recapture the level it was out prior to the “MOC Rug-Pull” ten minutes before yesterday’s close. So……….nothing to see here.
The above chart was a 1 minute. Backing up to a 5 minute, we can see yesterday’s peak of the counter-trend bounce (magenta) as well as the range-bound action that took place since then. So the bulls and bears are about to have a serious face-off.
In particular, if the “light at the end of the tunnel” optimism wins the public over, and we get past the green tint, there could be more life in this bounce. My money, as you know, is on the bounce getting wobbly legs. It’s a long way off, but a failure of the support I’ve tinted below in magenta would invoke panic.
Taking a step even farther back, to the four-hour chart, we can see the entire run-up to the lifetime high of the market (which feels like it was about fifteen years ago, but wasn’t even two months) and the staggering mountain of overhead supply which exists. That teal zone is the best friend in the world to the bears. Face it, with trillions and trillions and trillions of dollars thrown at the market, this is what they’ve got to show for it:
And now we can enjoy some music, back when Michael Stipe had hair.
