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).
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.