I was glad to see the overnight ramp reverse, but there are a few peculiarities I want to raise.
- It’s a little unusual, if that was the top, for the market to top overnight like that (by that much).
- On a percentage basis, the selloff was miniscule. If we’re dealing with our coming off a major top, I would have expected something more like August 2020. We lost 7% in two days. Today was essentially a nothing burger.
- In the cash session, such as on $SPY, we have the look of an ascending triangle. If we press those highs again, this may have been the completion of a wave 4 (of some degree).
- It is a holiday week coming up and a lot of big money isn’t around as much, so will the market be muted?
Note: When articles are first posted, most of them are made available only to my Patreon supporters (I do try to publish some public posts on occasion). Over time (usually after a period of a few weeks or so), I make all of the work public. To gain access to my work when it is produced, please consider becoming a patron. More information may be found on my About page and on my Patreon page. In a nutshell, patrons of any denomination (you get to pick the amount) will be able to read my weekend analyses, Tier 1 members ($20/mo.) get access to all of the articles I write, and Tier 2 members ($35/mo.) get access to those, plus counts on other instruments and my Discord chatroom.