Almost EVERYTHING this week was predicted ahead of time before it happpened, that's why I'm putting together a weekly wrap instead of daily. Take yesterday for exxample, the large SPY triangle that totally failed, before it even tried to breakout I posted, there are no significant reversals without a head fake move first-if you don't understand why, see my 2 articles, "Understanding the Head-Fake Move.
Yesterday totally failed even with help. Today's triangle was much smaller, on a Friday afternoon when volume is lower as most traders are already in the Hamptons. Everything they could use to get the breakout moving was used, what they are looking for is a bull trap, they need retail to bite and based on the Twitter feed, they were all looking at these same things we were, they just don't realize these are the setups used against them.
In weeks past retail hasn't bitten, there was a good resistance line today though, the triangle was right under it and they bit today.
Example...
Some people call it churning, some a bull trap, some a failed breakout, I call it a head fake because that is really what it is, those traders are locked in, Monday or Sunday's futures open gap down, and someone's in real trouble, but it's not chance I'm talking about, it's everything this week.
I didn't even care the market was down yesterday, it was how the market reacted during the day, the week that told me the most, price isn't telling you anything everyone else doesn't already know.
So I want to put together not only analysis from the week end, but a timeline of what we expected and why this week and then what happened.
Look for the post-it will take a while, other than that, enjoy your weekend and watch the WSJ for some perhaps surprising news.
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