Tough Spot

12:05pm EDT: We’re in a tough spot right now in terms of picking a direction. Either we are here:

Blue means new highs sometime next week. Or we are here:

It should actually say W-X-Y – sorry – but you get the drift here.

It’s starting to look like blue to me right now – seems we bears might have to sit through even more pain before we see any meaningful retracement.

NYSE breadth now at 1.6 – nothing to write home about but solidly in bullish territory.

1:11pm EDT: I thought you guys would enjoy some channel magic:

Chart says it all – orange scenario probably dies when we breach those two resistance lines.

It’s all Fed money now, folks – the concept of a liquid, regulated, and transparent market has long been dead.

White on white translucent black capes
Back on the rack
Bela Lugosi’s dead
The bats have left the bell tower
The victims have been bled
Red velvet lines the black box
Bela Lugosi’s dead
Undead undead undead
The virginal brides file past his tomb
Strewn with time’s dead flowers
Bereft in deathly bloom
Alone in a darkened room
The count
Bela Logosi’s dead
Undead undead undead

Embrace the pain, rats – it might get a lot worse before it gets better. The higher it goes the cheaper premium will get – just a matter of perspective.