The buyers showed up again in the final hours today to defend the coveted 1514 level. This time around, the price action formed a picture perfect bear flag on the intraday charts, just below 1514. If you weren’t a bear up unto that point, it may have been enough to bait you in. Unfortunate for any overeager bears (or shaky bulls), there was no downside. Instead we saw a squeeze into the bell.
This was an interesting week as we made our way through the 7th inning of earnings. Individual stocks are trading all over the place, decoupling from the mild upside action in the S&P. This is how a healthy market behaves. Always keep the index in mind, but you must analyze the price action of individual issues.
Major news headlines this week included State of the Union and its minimum wage increase talk, a barbequed cop killer, the complete failure of Carnival’s Triumph, the $HLF meatloaf fight, and a galactic rock smashing into Russia. No big deal, just another week in the world. Did I miss anything? Last summer any one of these items could have cost us 200 Dow points.
This week feels like it had two Tuesdays. All the puzzle pieces are here. The three day weekend (from the market, I always work) is an excellent opportunity to regroup and strategize going into the second half of my iBC interim position. My best ideas come about 15 minutes into a mile swim. Not at 5pm on Friday. So I kindly bid you adieu, for king and country!
h/t @dvk1970 for cueing me to the parties responsible for holding up the market this afternoon:
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it takes you 15+ min to swim a mile?
eh i just completely miscalced that.
woops
I know you miscalculated it, but a 15 minute mile is blazing…holding a sub 1:00/100 pace for 1650 yards = Olympic caliber.
Holding that pace in a workout…not competition…just to clarify.