In this weekend’s newsletter, I will discuss a handful of things and I few things I would hope to see with the S&P 500 coming up soon and why.
First, let’s review the general structure of what’s becoming a slop fest up at these highs.
At yesterday’s open, we could see what looked like a bull flag, from which we then fell, and in doing so, we broke the bear [sic] minimum of up trend lines. And today, you see how that lower rail of that bull flag (if we project it much further forward) has served as a sort of magnet:
We gapped back above the lower rail this morning, lost it, recaptured it, lost it, recaptured it, then lost it again. My hopes for a surprise to the downside today were dashed long before the open and today turned out to be the kind of slop-fest we sometimes see on OPEX. The surprise to the downside would have been nice because there’s always a spot somewhere when folks are reluctant to sell into a hole like Thursday, only to find out that the hole is a lot bigger, and we had a good chance of that happening given the status of the VIX: she looks like she’s about to have an orgasm and I take her needs very seriously.
I’m not as sure now what can happen from here. But I will point out a few things.
One of my motivations for a faster drop is this:
So, I hope some of this is helpful. I will see you next week. I hope everyone has a fine weekend.