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Think back to January 4th for a moment. Probably no other financial instrument better captures the frustrating circumstances of the market than our beloved EFA. What a month earlier was a beautiful head and shoulders pattern had become a distorted monster, roaring higher on almost a daily basis. It was a miserable, faith-testing period for those of us who perceived it as a topping formation.
Well, now what? Honestly, this is becoming a bit silly. We are at the same spot we were near day’s end last Friday, even though a mountain of events have taken place since now and then. Let’s just all agree the bulls aren’t giving up without a fight. Thirteen years of effortless profits are a hard habit to break.
Last night, shortly after the futures markets opened, I did a post for Slope’s premium members in which I pointed out, as I called it, the Fibonacci Wall that existed (which I laid out last week) and which stopped the drop like a traffic cop (see circle below). I woke up at 4:45 this morning to check in on things, and as I fully expected, the trusty Plunge Protection Team has been steadily buying back the market since, ya know, it’s so healthy and all. Ostensibly, peace talks in Belarus are sure to make things all better.
Even before the GOOGL/AMD earnings came out Tuesday night, the tide had turned against the bears fiercely in recent days. In the span of a single week, the world went from we’re-all-going-to-die to happy-days-are-here-again. The icing on the cake, for the bulls, was the GOOGL news, an important component of which was the high-tech breakthrough of announcing a 20-for-1 stock split.
I suspect my surviving bearish brethren are starting to feel like this, given the violent assault the bulls have committed in recent hours:
