If we close this day red, that’ll make two back-to-back red days, which hasn’t happened since Dwight Eisenhower proposed to Mamie. It’s too early to honor that kind of event, however, since the market hasn’t even opened yet, but we’re red across the board, and the S&P 500 Futures has been working hard to burn off last Thursday’s insane mega-rally.
One element here is that the most ridiculous of the ridiculous did their usual, “Oh, yeah, I’ll go up even MORE!” schtick yesterday evening, but that seems to be faltering as people realize that P/E ratios measured in quadruple digits might not be desirable. As the saying goes, trees do not grow to the sky, as much as people wished they might.
The most promising pattern is over in small-caps land (the chart below is much longer-term than those above). We aren’t far from completing what could be an impressive and quite clean topping pattern in Russell 2000 Futures.
