Here are the weekly and daily chart for the Russell 2000 & the S&P-500 futures. I am seeing a lot of people saying “buy the dip?”, “should we be bullish here?”, “is everything still perfect?” or some other ridiculous way to get attention on their headline in order to gain page views. This crap is useless and I can’t stand it. Most people’s argument is that we are at the 20 period moving average on the weekly charts. That is great, that constitutes looking at the lower time frame aka a daily chart for an entry signal, accumulation, or just any sign of life that the bulls are still holding up their end of the bargain and will in fact take this higher. Well, look at them. Do you see any sign of life? Do you see any, even one, accumulation bar on the daily? How about bullish price structure? Bullish reactions off of support? I mean where is it, what in that daily chart could possibly constitute a buy signal as of right now? The most basic form of technical analysis is looking to see how price reacts off of support and resistance. All I am seeing is failure patterns on both daily and weekly, price being sold off of resistance levels, breaking through support, that support being turned into resistance and then being sold off of that, I am seeing distribution bars all over the place. In fact, this entire area up here is being used for liquidation as I see it so far. So I am still very confused at how that constitutes a “should we be buying right here?” headline. All that does is put more confusion into the industry and give new traders the wrong impression of how they should be forming their technical analysis and it also teaches complacency. Just because we have been in a bull market all year does not mean the market need not prove itself. That is how massive amounts of money are lost. Read up on the education piece I did on multi-time frame analysis, specifically the micro analysis part. That isn’t just mumbo jumbo, it applies in real time. Now maybe next week we break the low of this past week, give some accumulation and break back above that low, hold it, and all while holding above the 20ema on the weekly chart as an example. You know showing some type of buy pressure, then that is when we should expect to see the bullish, buy the dip, lets get long headlines.
Just here to make sure the realness is coming from somewhere.
Take it easy and happy trading to everyone,
-Michael
