I don’t quite know what to say about what’s going on this chart and in the market.
Except that, remarkably, it appears we’re in a nearly perfect mirror image of the Brexit rally from last July. Rally in the first week (the light green shading on the left), a one-day pause, another upside follow-through the second week including two upthrust bars in the third week, then chop for a week or so, and finally another multiple-day run up in the fifth week. Repeat that exactly week by week in the light green shading on the left and we are at now.
So will we have those three up days in the light red oval on the left to fill out the light red oval on the right and then chop-hop our way through the end of the year to complete this “Repeat/Rhyme”? Or are we on the verge of the whole thing going to slime?
Probably a lot could depend on the Fed, particularly the market’s reaction to the Fed Wednesday.
My guess…We go on tomorrow or the next day, and up into the end of the week…
(click on the chart for a larger view)