We got our big bounce yesterday, and we got a smaller version of it this morning. Across the board, the price levels that had represented support until last Thursday now represent resistance.
You can see this “phase change” everywhere you look, including the /ES. You can see the support (green arrows) go through a violent mutation (cyan oval) which has now caused the purpose of the horizontal to invert (red arrows). The next eight trading days are going to be exceptionally rough sailing.
Of course, to any surviving bears out there, the ideal scenario would look something like this:
My key position, EFA, has respected its own resistance level nicely, and even on this everything-is-green-for-no-particular-reason morning, the bid/ask is suggesting a dip at the open.
I am aggressively positioned on the bear side in the midst of all this, having re-established positions during yesterday’s strength. Equities have gone straight up for the past four hours, so let’s see if that horizontal still holds.
