Short-Term Phase-o-rama

Anyway, just to share some thoughts on where the market stands………

I have taken the liberty of color-coding what I see as the regular phases of recent market activity:

MAGENTA – a modest drop in the market (where I get mildly excited);

GREEN – a recovery of a portion of the recent loss, and people are wondering if the high is in yet or not;

CYAN – off the new lifetime highs! The market blasts past the recent drop and quickly makes it a memory;

…..and then the cycle repeats.

The question in my mind, of course, is whether we’re going to get another CYAN or not…….or if…….uh-oh, here come those words……..it’s different this time. As of this moment, the ES is down 4, but that won’t mean anything until tomorrow is over (and Friday as well, I suspect). My money is on a break to this uptrending sine wave.

One other item I’d strongly suggest watching is gold. We’ve been making a series of lower highs. If gold makes an obscene gesture to this pattern and rips past, say, $1310, we’ve got a very different ball game on our hands.