Okay, that little parabolic move turned into a big one! The DOW is now plus 200 and more than 450 points off this morning’s low.
Below is a 5 minute SPX chart. Classic parabolic shape from this morning’s low. Remember what happens to all parabolic curves? In this chart you can see the bullish looking triangle with the upper down sloping line (blue) the lower up sloping line (matching blue). We obviously threw under, then came back up to the top and are now right back at the old triangle bottom at 858 (light blue line).
Let’s zoom out to a 60 day chart and look at that blue down sloping line that now makes the top of the current triangle. That line is the key for me right now. If we get above that line then I’m bullish short term. If, however, we follow that line down, that’s another matter. Once again you can see how prices keep returning to the 850/860 level. The descending line is about to squeeze out a resolution one way or the other. In either case I can almost guarantee at least one head fake in the wrong direction first!
DOW now plus 140…