Well, my friends, we’ve got some red on the screen this morning, but we’ve all learned by now how meaningless that really is. I mean, one glance at the ES shows not just a steady ascent higher since the throbbing election, but in particular, a bottle-rocket ascent lately which is so perfectly controlled and planned and a straight arrow virtually covers every single pixel. They’re not even trying to hide it anymore.
At the same time, VIX futures continue to work their way toward $nothing, as the assurance that everything will be just peaches-and-cream until the end of time is embraced by Joe and Jane Public, with precious few exceptions amongst the citizenry.
The NQ still provides a glimmer of hope for a scintilla of reason, as the range-bound ramblings might portend an equally-sized drop beneath this pattern.
Yet I view such prospects with skepticism, as the much-larger, very well-formed topping pattern in the NQ was violently aborted in the area I’ve marked below. Until then, it was a perfect pattern, and then, BLAMMO, Powell Puts Putrefy the damned thing.
Let’s keep a close eye on the small caps. I continue to believe these have the best chance of a meaningful push lower, hence I am long June puts on the IWM.