If you want to see how chart-compliant the market is being, look no further than the Russell 2000 futures (symbol /RTY). The market was plunging, but BANG, the moment it got to the supporting horizontal line, it went zipping higher. As I’m typing this, it’s fifteen minutes before the speech, so God only knows what this will look like once Powell’s text is released.
So what’s this line all about? It’s basically the lowest level (about 1820) that the /RTY was able to reach following the vomit-inducing explosion higher of November 10th (about half of which has vanished already). Break 1820, and it’s party time.
Good luck to you, and I’ll see you on the other side of this absurdity.
