UPDATE 2:20am EST: Well, we’ve been seeing higher highs and higher lows since the open – we filled the gap and have bounced back since then. This chart looks interesting:
While the Spiders are painting what could be interpreted as a bear flag the XLF’s channel is pointing down. Which side will win? I think we’ll know soon.
BTW, yes – this is a chapter of my rare edition book of evil market sorcery.
UPDATE 2:55 pm EST: LOL – we’re really not going anywhere today – feels like I’m spending the day at Six Flags. I’m going to break early for lunch and then kick back – don’t feel like watching this whipsaw much longer.
If you don’t hear from me for the rest of today don’t file an APB – I’m done for the week and feel like breaking early for the weekend. And yeah, I’m holding my puts into the weekend. As I said – it’s play money and there’s a good chance they’ll be worthless by Monday. But I had a good morning open and thus I permit myself a [small] roll of the dice – we’re not talking big money.
Good show again this week, rats! I’ll be in touch on Sunday with my notorious weekend forecast.
P.S.: As I’m tying this we’re actually in the plus on the NDX and the RUT. I told you guys today would be interesting.
UPDATE 10:40am EST: We busted a little higher and retested the prior support 741.02 line, just as promised.
As you know I reloaded around 742 and am prepared to hold those suckers even if we close that gap, which also happens to be the 38.2% fib line. Coincidence? I think not.
UPDATE 12:09pm EST: Nice little zigzag you’ve got there!
At this point there’s a good chance the gap will be filled.
UPDATE 12:48pm EST: It seems the NQ is leading the pack again today folks – keep an eye on it if you want to get a feel for where the tape is heading.
UPDATE 1:18pm EST: Bulls are fighting like mad to hold the old 740 line after this morning’s breach:
Check out our new channel – I think those are good inflection points. If scrape the upper boundary again the bulls are going to make a run to fill the gap. Pretty good chance of that happening actually – I won’t get nervious unless we bust above it with force.
UPDATE 1:33pm EST: WOW – did you guys just see that counter candle on the ES and NQ? PPT is definitely attempting to hold this level.
UPDATE 1:36pm EST: NICE – we’ve got ourselves a huge battle here Yen just breached R1 pivot – on retest now. If it holds and busts higher it’ll get ugly for equities. This is make or break for the bulls – I hope it’s break.
UPDATE 2:00pm EST: I guess they can do this all day – we’re not going anywhere fast. I think we’ll fill the gap, which will make the mouth breathers happy. If you haven’t reloaded yet I’d probably wait until we do. Buyers are stepping in hard and thus far I think they’ve got the upper hand.