Fresh Perspective

Probably my favorite, and perhaps least favorite, part of traveling back from Europe is arriving in the US right around the equity market close after having been trapped on a plane for the last 9+ hours. Today I touched down just before 4pm EST and was able to quickly surmise that the market was a bit worse off than its relatively unchanged appearance on the surface. The daily $IWM chart paints a picture of an aggressive 3-day snapback rally that badly ran out of steam into the close this afternoon:

 Click to enlarge

Looks like equities will have to test lower in order to find firmer footing.

The day I left for Europe I posted the following chart speculating as to the whipsaw action that we may be in store for:

I must say that my speculative “gue-etching” has been pretty darn close – if it holds true then we are in for a slightly lower low (~1260 $SPX) followed by a strong rally up to the 1350-1360 area. Of course I am mentioning this in fun but also to make a point that I believe we are still firmly entrenched in a whipsaw range. It’s good to be back, I will have more tomorrow…..

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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