Okay, day traders will note the bearish engulfing candle on the SPX daily chart, since those things only carry a bearish implication for a day or two and SPX does, after all, have a gap to be filled just a hair lower.
You can see how SPX has tended to fill its more conspicuous gaps along the way up; except for the one down around 2470, which would be the healthy thing for the market to do now. If the market does not bother with the 2470 gap and make a smashing test of the SMA 50 to shake ’em out, and instead fills this gap and keeps going up we’ll really have an indication of mania.
Frankly, I hope it does not do the healthy thing because I want to get my ultimate plans in gear sooner rather than later; and that requires a blow off in both stocks and Treasury yields. The other alternative is the old Q4 top scenario (last I checked this is still Q4) that did not require blow off. It could actually be a fierce but ultimately healthy major correction.
This nickel-diming the market is getting old (and my trades have suffered accordingly, lately). But whatever, we’ll see whether this is a little hiccup or something healthier.
Maybe Trump can tweet something to get his dunderheads buying again, ha ha ha.
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