The market had been slowly slipping lower all night until it ripped higher. And why would that be? Because NYCB didn’t go bankrupt. That’s the big news. A bank was supposed to die, but it’s not dead yet. That’s why people are celebrating and pushing stocks from insanely overvalued to super-duper insanely overvalued.
You can see how swift the bounce has been.
Which simply augments the absolutely relentlessly nearly 1,000 point accrual since Halloween. It seems 5,000 is inevitable, and probably just minutes away at this point.
Looking at the even longer-term /ES, we have long since blasted to lifetime highs. Perhaps these Fibonaccis should be retired, but they’re mildly interesting as an artifact still.
Just about the only item that isn’t at daily lifetime highs remains the small caps, seen by way of the /RTY futures, which have been range-bound for literally years. There are actually ranges-within-ranges, as the bright red zone below indicates. My desire, naturally, is to slip under this currently range so we can get past that important retracement level at 1883.
For now, however, volatility has been smothered to death, which explains why the market is as boring as unflavored oatmeal.
And that, my friends, is that.
