has this time failed the consensus badly as the S+P 500, has rolled over,broken a descending pattern,
and has now fallen 200 points, ..in less than 4 trading days.
The almost complete reversal of fortune is telegraphed by the speed of the decline.
Complacency has a way of catching up with the market when the consensus is so very one sided.
The move down from the peak at 3429 on Fed meeting day has simply caught
the bulls in massive bull trap that has completely blindsided the majority.
Whether this one sided belief in the Fed's cookie jar was the real fools gold ,
will be quantified in the days and weeks ahead.
However next time you hear a market guru say "Don't Fight The Fed."
perhaps now you will think twice,before accepting that mantra coverall... ever again.
Thank you. You too.
Banking scandal brewing in EU, multi decade potential money laundering violations coming out..
You're absolutely correct about the flight to whatever quality is still out there,
Thanks for your comments.
The technical expectation is that a "descending wedge " triangle pattern to the downside usually has an upside bullish resolution.
Conversely an ascending wedge triangle pattern's technical expectation is for a bearish downside resolution.
In reality then, the technical pattern resolution for a wedgehas the exact opposite conclusion than expected.
I hope the helps
This marketwatch contributor writes an insightful blog, he also observes that NQ is compressing and price change is less on each decline: https://www.marketwatch.com/story/charting-a-bearish-technical-tilt-sp-500-dow-industrials-violate-major-support-2020-09-22-121035222?mod=mw_latestnews
GL my friend!
Thanks for Michael Ashbaugh's column. He's very good. I used to read him all the time.
The highlighted damage shown to XLF is almost worth the price of admission.
BTW, great long side, switch and buy yesterday.Impressive to say the least Mr.Sawbucks
Maybe you should be writing a column for Market Watch too :)