Scaring The Children?
Volatility strikes again and we find ourselves at the edge of the abyss yet once more. Perhaps the spike up was the extent of the fourth wave up or perhaps this is only an attempt to scare the children before we bust higher.
Fortunately we fade emotion and instead employ our charts when assessing the odds:
Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
I drew a fib retracement on yesterday’s spike up and thus far we almost exactly dropped 61.8%, which is really the maximum I would allow if we are to continue higher. So, what this means for us is that each handle below 1125.34 decreases the odds for a push higher. If we get to the 78.6% mark at 1117 it’s pretty much game over for the longs.
On the spoos we now see a cluster of buy net-lines starting at 1153 – remember that fair value is between -2.75 and -3.00 right now. We need to get there and start breaching them – a lackluster session today or tomorrow will solidly hand the momentum back over to the bears. I do see a bit of support at today’s lows – which also happens to be the lower boundary of my 25-hour BB. Further below is the 100-hour standard deviation at 1093, but frankly if we get there we most likely will see panic selling and nothing is going to matter.
That’s pretty much it – I’ll parse around and will chime in again if I see any charts of interest.