Instead of a video today, I have two stark charts to view.  Do they look similar? Perhaps to some, but when the “structure” is removed, the second chart should look quite different from most.

In the first chart below we see the old bullish structure; we can see the perfect channel rising from the lower right to the upper left. We can see the old highs via the red ellipses that shortly thereafter become support shown by the green ellipses.  That structure, however, was obliterated last week.

In the second chart below, we can see the result of the selling onslaught.  For those that were long, it may sadly remind them of Hurricane Michael’s devastation in the Florida panhandle.

Many hoped that after the weekend the market would be strong as it rode a bid to higher levels, but as I write this, it hasn’t happened.  Will the afternoon be strong? Everything seems to have changed in what amounts to a snap of the fingers. Be careful buying, unless it is at a very deep level.

 

about the author:

Dan O'Brien

Dan O’Brien has had a long, experienced career as a trader, a broker and an educator. He has a tremendous track record calling trading signals in the S&P 500 and major stock names. Dan has developed all the tools with his over 20+ years of experience in the business - top-notch technical acumen, an in-depth understanding of market fundamentals, a disciplined approach to trading and a patient style of teaching.

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