Who New?

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The face-punching of the beleaguered bears continues, as the bulls have been more-or-less running the show since June 16th of last year. More recently, since January 6th, it’s basically been a straight line up, and the NASDAQ roared above its 50% retracement level this morning.

If the bulls want to make a real go of this year, they need to complete this inverted head and shoulders setup on the small caps. That way, such fine American institutions as WeWork can thrive and prosper.

The real test is the horizontal line shown below. This is the /ES market from the mid-August peak until the present. We bottomed on October 13th, and after a huge rally, we lost about half those gains. Late in December, the market hammered out a small bullish base (rectangle below) from which it finally roared higher, and it’s been kicking ever since. The /ES successfully tested this base and is starting to re-ascend, and it needs to conquer its most recent “lower high” (that horizontal line) to add fuel to this fire.

As for myself, all I can say is thank God for SlopeTalk. It is a tremendously healthy and constructive distraction from this market, in which I have lost virtually all interest. If I can’t be enjoying trading, at least I can focus my attentions on creating something wonderful.