On the SPYs we have the following action:
-- A two day rally, followed by a bull market flag.
-- A big 2-day drop, leading into a triangle consolidation that lasted 4 days
-- A three day rally
Notice the pattern -- rally, steep sell-off, rally. And in all the time we've added about 2.68% but have gotten there in an incredibly messy way.
On the QQQQs, notice we have
-- A two day rally and a triangle consolidation.
-- A steep two day sell-off
-- A five day rally that nets us 1 point over 10 days, or a 2.28% gain.
Notice the pattern -- rally, sharp-sell off followed by a rally. This is an awful lot of wasted motion.
On the IWMs, notice:
-- A 2-day rally followed by a one day triangle consolidation.
-- A steep 2 day sell-off followed by a 4 day triangle consolidation pattern
-- A three day rally that nets us almost 4 points or 5.7%.
A case can be made that the IWMs are doing well because of the net gain. But again, loot at the trading.
Traders want to see trends -- and I don't see any at this point. I see a lot of fits and starts and a great deal of tentativeness on the part of everybody in the market.
