It would be nicer if the steady burn-off in prices that took place all through Sunday night had held on, but no, the magical Midnight hour arrived, and it all went away. I also saw that Squirrel mentioned a “special rebalancing” that was mysteriously announced by the NASDAQ, clearly with the hope of propping up nominal index data for the sake of Ma & Pa Kettle retail investors.
My focus is on the /RTY, as the iShares Russell 2000 ETF (NYSE:IWM) is the only instrument against which I own puts. The range I’ve highlighted below is key. If we can just break below that red horizontal line, things can start getting spicy again.
The /S&P 500 Futures, on a longer time scale than the first chart, has had a short-term double top.
I expect the market to meander for today and Tuesday since the Next Big Lurch we’re all waiting for is the CPI. It seems almost a foregone conclusion that it will just keep slipping, which will be celebrated as good news. A year from now, when we’re in a deflationary collapse, the government will be begging to have inflation back, but for now, people are embracing the slide.
