It turns out the stock market appears to have taken the “grind” theme literally. The ‘W’ pattern is getting eliminated this morning (if pre-market activity holds up into the trading day). That is a good thing for the current analysis because the potential ‘W’, like the potential Inverted H&S before it would have measured to a new high at around 3000.
Instead what is taking place (again, if pre-market holds true) is an absolutely volatile whipsaw and grind. The black arrow shows the projected open as of 7:45 ET. This would fill a gap left behind on some hype or other last week. There is another one at the November low.
Will there be another up spike from around the October and November lows? There better be or the bulls are probably cooked and the ultimate target of 2100-2200 would move front and center.
Let’s again check the weekly chart on that. Taking out those lows and 2600 would break the neckline and load the measured target.
I am not calling to action because the neckline is not broken and it would only take one tweet, one jawbone or one policy announcement to ram this pig back to the top of the grind pattern. Short of that, I await a test of the October and November lows with great interest and note that the main picture has been bearish pending the trigger of that green dashed neckline.