Friday, September 16, 2016

Relief Now Doesn't Mean It Won't End Badly

Overhead Supply

By -

Well, thanks to D.G., the market really screwed the pooch today. However, I think we could be in for a downside surprise tomorrow. Take note of the intraday chart of the Dow Jones Composite. Observe its overhead supply (yellow tint; duh) and the tag of the broken trendline (green circle).
0915-comp
Also look at the ES, which is even more interesting. Same overhead supply, and I’ve circled in red the “trap” from Monday. I put it to you that today’s ridiculous surge (green circle) was the second trap of the week. I hope so, at least. See you Friday morning.
0915-estwo