More Market Insight

The strength we are seeing in the market today makes me feel better about my "Crazy Ivan" Theory or at least shorting near the apex of the triangle pattern. Take a look at this SPY chart.

The formation in price is similar or is an inverted H&S base, although small because this is a 5 min chart, the implied target suggests a move to the $132.50-like I said, despite seeing some distribution, that's only the start of the cycle, it will run until they have distributed all of the shares accumulated which I showed you in the market update and then maybe some as they may chose to also go short after distribution is complete. So today's price action is very much in line with what I was expecting yesterday before the close and the Price/Volume relationship yesterday was heavily biased at close down/volume up which for the fourth time in a little over a week has created a 1-day oversold/overbought condition. This would be the 4th one in this volatile lateral environment that has been called correctly, 4 for 4. So despite Japan and my feeling based on other world markets that it was going to ruin our analysis of what is going on tactically (from smart money's perspective), it seems we are very much still on track which is a welcome development.