Our bull friends thought they were going to run off with the market this morning, After they erased all the red from last night, they set up a bullish base and, where the arrow points out, sent the market racing higher. This effort has utterly fallen to pieces, as all the important equity futures are red and the bullish pattern has been laid waste.
This has shown up even more severely with the small caps, which are near their lows of the day and whose market action looked absolutely frenetic in the first couple hours of the trading day as the Fed battled with Reality.
I would point out that the key support on the /RTY is last weeks’ low. Take that out, and we can ratchet this sucker up a notch.
