So firstly Thursday and Fridays price action.
We back tested to a Point of Control which I actually nailed 4530 (even a broken clock is right twice a day). See attached chart to view my blind luck.
During that time a Point of Control was carved out at .382 Fib (4472) before barfing all the way down .50 retrace 4451. Call it a long squeeze.
Once again this all very controlled – these levels were drawn out in JP Morgans boardroom with Goldman Sachs on Zoom I’m sure – only half kidding, its so well executed.
However there was some violence to it in order to shake out longs – they broke down positive divergence to take out new longs. Have to get the contracts from somewhere!
It was a nasty leg down late on Friday afternoon.
So next week:
Frankly its hard to tell – one things is sure the Fib levels matter.
1) Based the greediest scenario we go past last months Point of Control at 4436 and get down to 4425 the .618 Fib – enough to scare the children and convince the world to go short that’s it – the bull market is over.
3) We gap up Sunday night and never look back.
4472 is open point of control and the .382 Fib, in all likelihood the market will be back early in the week.
There was contract roll so things are bit skewed – the fib levels are accurate.