One of the old adages that’s earned its keep over the years is that “markets take the stairs up and the elevator down.”  In other words, rallies come at a steady pace and corrections happen quickly, without notice.

That observation might have applied during the hundreds of years leading up to present day.  But, for backtests such as we’ve seen this past week…not so much.  ES completed its backtest of its January highs yesterday, tagging our initial target in a nearly incident-free landing.

Unfortunately for those who abhor excitement, the final 5 points weren’t quite as smooth.    But, the subsequent runway bounce got the index aloft again without incident.  The only problem: SPX didn’t backtest its January highs — which are the equivalent of about 2872.75 in ES, ideally around 12pm.

It’s quite likely we’re in for a little more turbulence.

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