by Chris
Well, I am just awed at the precision on display here.
Imagine you wanted to paint a double bottom, or at least convince other market participants that a double bottom had occurred. What would you do?
Well, I would defend the prior low with everything I had, drive the buying back over that line over and over again, and then close the ““markets”” just a whisker above the former low.
That way, the only possible interpretation is that the former low held firm and even made a “higher low.” That’s what you’d want to see if you were looking for a tradeable bottom.
Here are the former lows from 10/29/18 and then today’s close for the major US indexes:
Dow: (Low) 24,442.91
(today’s close) 24,465.64
S&P 500: (Low) 2,641.25
(today’s close) 2,641.89
Russel 2000: (Low) 1,468.70
(today’s close) 1,469.18
Nasdaq: (Low) 7,050.29
(today’s close) 6,908.82
Recap:
– Dow is +22.73 points from the 10/29 low or +0.09%
– S&P 500 is +0.64 points from the 10/29 low or +0.02%
– Russel is +0.48 points from the 10/29 low or +0.03%
– Nasdaq is -141.47 points from the 10/29 low or -2.01%
Incredible!
That’s some mighty fine precision there with only the Nasdaq playing odd-man-out. Think of the odds of three out of four major averages magically closing less than 0.1% above their respective former lows. But above is above, amiright?
If I were trading this mess (and to be clear I am not, nor is this advice) I would seriously consider buying the futures here for an overnight pop with a tight stop, just in case. Wouldn’t you agree, this looks like the bottom might be in?
But this certainly has a manufactured feel to it, the question is, can it hold?