The pattern is now obvious and irrefutable: an hour after the market closes on Friday, war breaks out again, and all weekend the bears get excited about what an awesome week is coming up. Then, just before the futures open on Sunday, they Ctrl-Z the entire situation.
Indeed, early on Sunday, this tweet came out:
Then, shortly before the opening bell (from Axios – who else??)
Which led to the utterly predictable result on the /ES the moment trading commenced.
Let’s not get too worked up, though. There’s actually dick-all happening this morning, and the /NQ’s 1%+ rise this morning is relatively inconsequential compared to the mayhem from last week.
The bigger picture still looks like an amazing top, so long as the goddamned thing will finally complete itself, which hasn’t happened quite yet but is as close as Independence Day.
The same outcome via a different pattern is shown on the /RTY, which has been playing jump-rope with its trendline since March and honestly needs to exhaust itself this week.
As for gold, it highlights how just about the only asset class which has been incontrovertible dog poo this year has been precious metals (since January 31st, at least). It is steadily getting beaten down and although $4,000 represents shaky support, it could easily get busted down to the lower $3,000s.
This is a shortened trading week, remember, with the only big economic data being on Thursday when the jobs report is released pre-open.
