There are points in the life of every analog that so strongly test one’s convictions that the temptation to bail is overwhelming. This is one of those days.
Every analog eventually dies – rarely with a bang, more often with a series of overnight/weekend ramp jobs like the ones we’ve just seen.
If the analog holds, today’s head fake was the last, best chance to get on board. If it doesn’t, today was the obvious sign that the analog was a terrible idea in the first place.
Stay tuned.
continued for members…
The two H&S Patterns in the 60-min chart that didn’t play out (yet) tell the story.
We really couldn’t rally much more without the analog going to pieces…
Especially with VIX having tagged the SMA200. Any lower, and the momentum will be tough to reverse. If there’s one chart to watch today, this is it.
Currencies facilitated the bounce, with EURUSD’s pop back above 1.01 and USDJPY’s reluctance to reverse front and center.
Oil and gas are also bouncing, with both running into their SMA10s.
Which means that TNX is also levitating.