The juxtaposition between right now and twenty-four hours ago is quite sharp. Markets are decidedly mellow, with equities down fractionally. The /ES, shown here, tried to burst above its peak yesterday, but that flopped. I remain astonished that the market’s entire mega-rally yesterday was due to any words that came out of the mouth of DJT. It’s stunning.
Volatility, on the other hand, has come full circle (or more like full isosceles triangle). We’ve gone from 23 to 30 and back to 23. Hey, at least it isn’t 13!
Crude oil has reversed its terror rally, although I just bet a few limp politicians trot out a chart like this to show what amazing things the President has done for (checking notes) affordability, that new word that was invented, golly, just a few months ago.
Bitcoin has recovered, but its $1500 ascent is inconsequential compared to the reversal pattern it is facing.
The key thing to remember, as always, is context. This chart of the /ES says it all: the entire bounce over the past thirty hours has done nothing more than generate a fresh opportunity for the bears. I examined a thousand charts last night, and I am ready to rock and roll once more.
