Very strong up day today, but the quandary I presented in the RUT yesterday is still unresolved. My two counts are shown on the 30 minute chart.
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RUT DAY
RUT 60 MIN
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RUT 30 MIN
The DJT is shown to give the bigger picture view. Unlike the RUT, it did retrace to .618 of its Intermediate (1) decline, and it did test and reject at its 200 DMA.
DJT DAY
DJT 60 MIN
DJT 10 MIN
The German DAX had a very impressive day today. It rose enough to challenge an open gap and almost touch its 50 DMA. Of the three indices I am showing, it has a valid triangle in the green count on the 60 min chart. The DAX also never got that close to testing its 200 DMA. Is that what it is trying to do now? I doubt it, but the next few days should be very telling one way or the other.
DAX DAILY
DAX 60 MIN
DAX 10 MIN
The final chart shows some near term DAX fib resistance levels. The two thick horizontal bars represent confluent resistance levels.
DAX 60 MIN FIB RESISTANCE
So, what was today's rally all about? Possessed, maniacal shoppers pepper-spraying each other? Don't think so. The latest idea is that Germany and France will be able to ram through fiscal discipline pacts that Eurozone governments will mutually agree to without the democratic nuisance of pursuing Treaty change. Based on these pacts, the ECB will then step in and start monetizing. Hey, who knows? If the ECB is truly wanting to go in that direction, and just looking for political cover, then maybe these "pacts" will do the trick. Just one question though - did not the TFEU already contain Treaty level agreements setting debt and deficit maximums in Article 126 and Annex? My Bullshit Meter is pegged at 101%.
To those who made some very nice remarks concerning my father, I thank you. To those who feel they would like to make such remarks, I ask you to please refrain, as I really don't know how to respond.
