Yesterday morning, I did a post called Miles to Go which featured this image of a base, about which I wrote “The /ES has been hammering out what might be a basing pattern for its next bounce-back launch higher.”
Well, what happened next was quite interesting and is conveyed in this minute bar chart of the /ES over the past twenty-four hours:
Here we can see how important that line I drew is:
- The /ES blasted toward it and met resistance (arrow);
- It then took a running start and cut right through the line, and its immediate blast higher shows the power of that line;
- The market started selling off, but it respected the line as support instead of resistance (second arrow);
- Yet when the market got weak enough after the close to sneak past the line, the /ES bled off for hours before trying another rally attempt, which managed to push the market barely back above the line;
- The damage was done, however, and the /ES yet again cracked the horizontal, after which it tried again and again to conquer it, failing each time
Thus, as I am typing this, the /ES is down a delicious 55 points, and the lunatic positions I took on yesterday (APP, IONQ, NFLX) are doing just dandy!
It’s also heartening to see precious metals piss DIRECTLY into Powell’s face, as gold hits yet another lifetime high, proving what a disaster the entire Federal Reserve system is.
I’m going to jump into the battle right now, but it looks like a terrific day, in contrast to yesterday’s boring bounce-fest for the bulls.
