Volatility galore and a pattern of lower highs and higher lows suggests a major move may be in the works.
Oil & copper are experiencing significant pressure to the downside and certainly are giving markets every excuse in the world to break lower. But they haven’t. Yet. The most popular view expressed on twitter is a heads & shoulders pattern which may be correct, but is really only pointing in one direction. At the risk of being too cute here I also see the outside chance of a diamond (if one takes the December 18 $SPY spike to be meaningful) which may break in either direction:
Retail sales were a proper mess this morning and the $ES is playing with a potential double bottom. A red day 9 out 11 is in the works. Somebody better step up here:
Bottomline: Great trading times.
In the news:
ECB gets interim green light for OMT bond-buying from European court
Nerves Rattled in U.S. Equities as S&P 500 Volatility Turns Ugly
Arctic Explorers Retreat From Hostile Waters With Oil Prices Low
Moody’s: ‘Grexit’ likely to trigger renewed recession in the eurozone
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