After big losses yesterday, ES gained over 20 points overnight. It has since given up those gains and has completed a small H&S pattern targeting 4247.continued for members…

The big picture:

Oil is dropping further, and RB is finally joining in.

Along with RB’s possible crack, TNX is again hinting at a reversal.

Currencies are still largely on the sidelines. BTC has one last TL of support to deal with…

I have several conference calls this morning and will then be on the road all day. I should have a chance to post over the weekend if anything unusual unfolds today.

GLTA

UPDATE: Feb 19, 12:10PM

ES’ little H&S pattern played out and has resulted in a larger one also playing out (in purple.)

Note that an AB = BC correction would put ES right at the yellow 3.618 extension, which was never backtested following ES pop through it in April 2021. That much of a move wouldn’t quite get SPX to its 3.618 but to 3999.31, marked below in purple.It should be a wild ride.