I just want to share some thoughts about this one chart:
What we have here are the /NQ futures with Fibonacci retracements. As you can plainly see, these lines have amazing power:
- The green arrows mark how the Fib is providing support
- The white circles show Fib failures
- The red arrows mark Fib resistance
Indeed, I took the screenshot above at the moment /NQ was approaching support and now, just minutes later, it is bouncing higher. The amusing thing is that I fully expected a sell-off after Friday’s insane late-day rally, only to see futures all GREEN at the open on Sunday. Of course, given the broader trends, this didn’t last.
That sort of short-lived optimism is no surprise, however. Mainstream websites like Zerohedge continue to pump out permabullish bile, no matter what is going on. This morning, with the /NQ down 300 points, they still are shoving out this kind of tripe:
Utter crap.
Also, if you didn’t read them the first time, check out these two posts I published over the past twenty-four hours. They are inimitably illustrative of the cosmic stupidity that has enveloped the asset markets. Slope feels like a minuscule island of good sense surrounded by an ocean of insanity.
