Greetings from 50 degrees, it-hasn’t-rained-since-Christmas Palo Alto. It’s Wednesday night as I am typing this, and I really wanted to say something about the /ES futures…….
- I am delighted to see an all-red screen, which feels like it’s been a while but actually hasn’t;
- My delight will treble if we have similar action post-Amazon (NASDAQ:AMZN) Thursday afternoon;
- But…………
- I am a purist when it comes to patterns, and I would have truly preferred the price not have pushed past the neckline. In other words, the rounded rectangle defines the “it really shouldn’t have gone here” area. Were it not for that, the notion of a pure price plunge (red arrow) would have been more plausible.
Strictly speaking, I see us as range-bound at the moment. Even if we push below the neckline again (which is not guaranteed), it still means that pattern is somewhat spoiled.
I’m very eager to see what the morning holds, but I just thought I’d splash a little bit of cold water on the bear celebration by pointing out that things are not Tim Pristine. Not exactly.