We came into today with some major unsettled business. I was talking this out inside Exodus yesterday afternoon and this morning–when a trend day prints there is a high probability we exceed it, if only for a tick, the next session. Then we made another little mess overnight when we made a new swing low during Globex. However, the stock market did the dirty work this morning.
The trend day logic was settled. The gap up this morning was a problem. If bulls stepped into it and ran price higher, it was likely to lead to a soft afternoon. Another one. Instead we had a strong open-rejection-reversal down off the open. The low print from yesterday was breached. Golf clap.
Then sellers really had their juices flowing and took out overnight low. All the sudden the clouds broke and a ray of sunshine burned into the dark hole where seller were celebrating Marti Gras. It was at that moment their world was turned upside down.
Now I know most of you are not excited about this move, citing breadth and broken charts and every other problem. But I have seen this script play out many times in recent history. Breadth can catch up to the indices or we just run on narrow participation. I have been flabbergasted more than once by how soon we return to all-time highs.
Today the market did what it needed to and took care of it fast. Have you ever woke up to duct take on your forearm? One of the boys playing a rotten prank? You can either cringe and peel it off, hair by hair, or you just rip that fucker off in one foul swoop.
Today we did the latter.
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…….But I have very hairy forearms (just ask The Fly)
Maybe not so much kangaroo, more convulsing sword fish.