This was the worst week the S&Ps have seen in a long while. They looked so enfeebled, actually, that bears for a rare change acted unthreatened by the rallies. Half-hearted upthrusts repeatedly failed, and even the impulsive head-fakes showed no follow-through. In the end, with a steep, downward finishing stroke ahead of Friday’s closing bell, the futures created a robustly bearish impulse leg on the hourly chart. Although Pivoteers can try bottom-fishing in the discomfort zone near 4410, my expectation is that the December contract will grind lower, seeking support from the August 19 low near 4340. ______ UPDATE (Sep 14, 1):55 p.m. ET): The jagged downtrend looks like no other that we’ve seen for years, suggesting something has changed. When was the last time the S&Ps declined for four straight days? That is one reason the pattern is so unusual. However, bears have gotten the worst of it, since the rally spikes all the way down have exceeded the incremental gains from any short position held from one low to the next. This is nasty price action, but bears may be tested even further before they get a two- or three-day freefall to enjoy. _______ UPDATE (Sep 16, 8:55 p.m.): Bears have been getting brutalized by short squeeze rallies that have been too fleeting to go anywhere, but too vicious to endure. If they lose again on Friday, DaBoyz will be in good position to pop this hoax to new record highs next week.
ESZ21 – December E-Mini S&P (Last:4456.00)