We’ll know about eight hours after I’m typing this what the market’s initial reaction to the terrorist attack on Friday is, but as for now, people seem to think (oddly) that it’s bullish. Umm, I’m not a very bright bulb, but I don’t understand the logic there. Well, logic left the building seven years ago, so maybe they’re right. All I can manage to do is rely on the charts.
Looking at the intraday of the ES, it looks like we’ve got a nice topping pattern in place, but I admit, a lot of the downside seems to have been spent already. Indeed, the measured move takes us to about 1992, which isn’t that terribly far from here, and we could still bounce back to the neckline without violating the pattern.
Looking at the daily, I’d like to point out that for most of this year, the standard range has been pretty obvious, and we’re definitely on the low side of that range. The “exception” is tinted in cyan, and that didn’t last nearly as long as I’d have liked!
In closing, those of you on Facebook will understand this all too well:
