Recently I have tweeted 3 actionable index price patterns that I’ve observed amid the seeming chaos…
These include 1. a longer term consolidation set up consisting of a v broad range followed by a series of higher lo’s and lower hi’s which is looking good so far, 2. the end of day extensions which have been occurring so regularly and with such ferocity I am sure they must end soon and 3. and most recently the price tendency after these almost surreal rallies that are historically extremely rare but which we’ve had 3 of this month…
After the first 2 of these monster rallies, the market consolidated on the day after only to dramatically give up gains 2 days later. These routs were marked by the reemrgence of apparent distressed selling by large funds…
Today will be the 2nd day after the 3rd and most recent monster rally… As such it marks a key session in which we might either see a confirmation of more liquidation or disconfirmation in which the market consolidates or rallies suggesting the possible exhaustion of these seemingly endless sell off waves….
A critical close wrt to my trading posture into november…
-ppearlman