Today was a very sleepy day in the US markets.
One might think that most of the adults on Wall Street left early for their Summer homes and the beaches, having held off the threat of a market plunge with which we began this week.
If you look to the SP 500 chart in particular you will see that the SP futures are in a symmetrical triangle which is a 'decision point.' In a strong uptrend it is more often a continuation pattern, but at this point I would judge it to be much more of the crossroads, after the long bull run in stocks.
Next week is likely to be quiet UNLESS we see more exogenous surprises, most likely from overseas, in places such as Greece, the Ukraine, or China.
The organic action in the market is of much less influence than in a healthy market, and the major indices in particular seem to be firmly in the hands of the trading desks and their HFT algos.
The swings in volatility, if they continue in their Jekyll & Hyde manner of the recent past, may likely culminate in the establishment of a very visible major top, and a serious correction into the Autumn.
But that is just a possibility for now, although many will make the call in the hopes of a hit.
Have a pleasant weekend.
