Three unlikely, yet truly intoxicating stories have played out in 2012, each one unexpected, thrilling to witness and somewhat unbelievable in its own right – the stock market’s unwavering advance, the NY Giants Superbowl run, and now, of course, the NY Knicks’ Jeremy Lin’s meteoric rise to stardom. True, being a sports fan and New York resident, these stories may resonate more for someone like me, but judging by the national coverage of each one, it seems likely that each phenomenon has extended a bit beyond the Manhattan borders.
Can anyone tell it is getting more difficult to describe the current state of the market? But as long as things continue the way they have been going, the complaints of such will minimal.
When the 2012 hasn’t provided us with the humdrum gap and hold scenario like Monday’s action did, the alternative (and more frequent) outcome has been a reversal of early weakness. Tuesday, of course, showcased characteristics of the latter in grand fashion, just as the market was threatening to log its potentially largest down day of the year.
Thus, with the late day turn, the resultant daily candle ended up being another doji, which has now emerged in five of the last seven sessions, as the market continues to digest the non-farm payroll-induced breakout from February 3rd.
The market did fall short of another breakout yesterday, but most likely only because it ran out of the time to . Regardless of the actual Greece news and if it was material was not, the reaction was a substantial one.
And outside of some of the opening up gaps we have witnessed this year, yesterday’s final 30 minute up bar was the largest to hit the system this year. Again, seeing it come just as the market was ostensibly losing momentum was both surprising and encouraging for the bullish crowd. Without that strong pop, the market could have very well tested yesterday’s low and quite possibly closed below the 10-Day MA.
Thus, the technical pattern coming into today resembles a short-term cup and handle pattern, which potentially counts to the high 1360s. And it appears we’ll need to hold a slight opening gap again for this to be a possibility.
So, Turnaround Tuesday didn’t materialize yesterday, nor did any technical crack. AAPL refused to acquiesce to the general market’s weakness, finishing at another all time high, and the (L)inspired Knicks continued to win. We know these streaks won’t last forever, but they have continued for yet another session, whether one chooses to believe the hype or not.