I wanted to point out an interesting feature of the last months and months.
There’s a sense in which we’re getting exactly nowhere.
And if we draw out where the last 50-61.8% retracements have been, you’ll see the ever tightening grip of this multi-trillion dollar ping pong match.
- The big box at the bottom is the 50-61.8% retracement of the rally off the COIVD crash low.
- From there, we rallied, but didn’t take out the August high, rallied only part way, and then fell again.
- But that drop didn’t get us very far, and we’ve not yet taken out the October low; instead, it, too, was only a partial decline.
- Instead of falling more, we rallied again, but, also again, we didn’t take out the prior end-of-year highs and only had a partial rally.
- And now we’ve fallen again but have so far not taken out the prior low, and we have just retraced exactly 50% of this year’s advance.
And in this weird way, we’re sort of coiling and coiling and coiling. It’s getting tighter and tighter and tighter in here. And of course you already know what that means.
When this is done, we’re going to move a thousand points.
I have my own bias here, which my members already know, but, one thing’s for sure: hold on to your britches.