First off, the strength in the /ES has been a huge pitcher of ice water into the face of the bears. It has exploded hundreds of points in just a few trading sessions, and we are getting very close to breaking out to lifetime highs for the first time in months.
Having said that, I would like to direct your attention to the last bastion of potential bearishness, which is tech stocks. The /NQ, shown below, has a well-formed symmetric triangle which is being challenged at this very moment. So far, the price action with respect to the triangle has been perfect: a failure, a retracement exactly to the trendline, a hard fall, and then a unrelenting rally back up to the exact same pattern.
Here’s a daily chart (as opposed to the four-hour style above) for some longer perspective.
My trust in this market is about the level of the VIX right now, so I continue to be agonizingly boringly light.
