16 November 2015

SP 500 and NDX Futures Daily Charts - Neither Rain, Nor Snow, Nor Gloom of Night

The economic news this morning in the form of the Empire Manufacturing number was awful.

Nevertheless, stocks had plenty of incentive to ramp today, having fallen into an oversold condition and tagged to the point the support levels one would expect them to match if we are seeing a W bottom or a 'cup and handle' setup to ramp equities higher into the end of the year.

The terror attack in Paris, which was horrible and vicious, nevertheless gave Wall Street the chance to look brave and patriotic, and rally paper assets just to spite those who are jealous of our freedom and prosperity.

So what next.

Let's see if stocks can really keep in going and set up that cup and handle and make it active.  We have fallen to the middle of the 'W' if you allow for the slant, so stocks cannot go lower than today's intraday lows or the chart formation is invalidated most likely.

When you are winning, nothing matters.

Have a pleasant evening.