Market Update for Thursday, October 19th, 2023

Good afternoon, traders.

Weird day!

Futures were down significantly overnight but then recovered, even producing a small gap up in the cash session. From that, we continued the relentless drip we’ve endured since Tuesday, and then we went on our wild ride, presumably due to remarks being made by Powell, in a kind of whipsaw reminiscent of FOMC days. And then we took a big poop into the close.

So, our basic structure remains the head & shoulders pattern and our relationship with the neckline:


After we began to fall from this local triangle I discussed on Tuesday, it sort of looks like we made another attempt today to recapture the neckline in that whipsaw we had, but were then rejected. That’s all good and bearish for the bears. So, I think it is best to adopt a defensive/bearish posture so long as we’re under that trend line, and to give the bulls the benefit of the doubt if they can get us back up above it. A nice line in the sand, if you will.

For now, since we’re under it and falling,

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I hope everyone has a lovely evening.

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