I have mentioned how the market is in a massive “Face Off”, with a giant topping pattern on the left and a massive bullish base on the right. Across the board, we are at the line of scrimmage, and my dream is, of course, that we resolve this tension bearishly. It turns out that the municipal bond fund has this exactly same crazy setup, which I’ve never seen in my life before (and now it’s all over the place).
The king of the hill for this pattern is the All World Index. Whichever way this resolves, it will define the market for months to come.
