Good morning, everyone, from pitch-black Palo Alto. It’s been quite the week, and I’ve got to say two adjacent things right at the top: (a) the market has been amazingly chart-friendly (b) shame on me for missing some of that chart-friendliness in real time. (Although I’ll add (c) NOT shame on me for actually anticipating some of this stuff in advance, even though I myself ignored it!)
Look at what’s going on with the /ES futures. Tuesday, of course, was our amazing CPI tumble. Wednesday and the first portion of Thursday were the “grinding away” period, clinging tightly to the trendline. Yesterday (and here’s the part I’m upset with myself about) the market fell hard, went roaring higher, and did a PERFECT touch of the aforementioned “clinging” trendline (blue arrow) at which time it did a miniature version of the Tuesday plunge. Since then, we’ve been leaking lower.





