Tape Tales

There were 2 Tells today. I'm not Calling it one way or another, but we did get some bearish action there at the end. I just want to show the things I saw. First, After the High energy reversal, I expected futures to be weak. I also expected traders to sell it in morning action. Every move then does have a counter move. So selling ended, and we landed in the positive. That ran out of MOMO, and we had Quite an aggressive sell off, but on weak volume. My supposition is that there is so much day trading right now... this is what is causing all the trouble... Basically it's like a gunfight, and traders are trying to figure out who is fastest... and it seems like nobody is winning. I've coined this the "Cool Hand Luke market" but remember in the end of cool hand luke, he dies. the 82.50 level has been ridiculous pivot point and if you want to talk range bound The market has been range bound off of the 82.5 pivot, I think I even identified it days ago.. Overall it's just the live or die point in the market. but with a lower "Range bound" than last week... that seems bearish.

back to indicators, we had a nice short covering rally off of the 82.50.... and it even finished on high volume.... But then... we just had some nice selling at 1pm, on decent volume.... That was interesting... but as a range bound pattern, I was just looking for sense of an Ascending or descending triangle. When the market pulled back to 50% retrace... I knew that was where that move would be decided. market pulled back further than the 50% and the Higher low, giving us a loose descending... or some form of Pennant... but not an ascending. Sure the market bounced from there... but ... It was then showing Bear. and... you had another 50% retrace, into a breakdown.OK, so we have seen this pattern 2 other times. after a High energy reversal in the past weeks... Bearish is that... we have seen it twice and this is the third time... and what is that rule of threes?

the last 2 times we have the reversal, and a consolidation then another move up, into a top....

Bearish is that this feels different than the other 2 times... and that is reflected in the end of day action... sort of a subtle warning..