Futures are up nicely after yesterday’s VIX-inspired stick save Recall that ES had completed a bearish H&S Pattern and VIX had completed a bearish Inverted H&S Pattern at the opening bell. Futures were off over 30 points and heading lower.
If VIX’s IH&S had held, ES’s pattern targeted 3832 – a drop of 3.2% from recent all-time highs. But, as bears know all too well, even a minor drop in equities has been verboten lately.
Instead, VIX’s neckline failed and ES’s pattern never played out. It rebounded at the nearest convenient trendline and repeated a very tiresome pattern of ramping overnight. Such is the power of algos.
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