Last week was one of the toughest I can remember. My heart goes out to the grieving friends and families of our servicemen who were lost in Chattanooga last week as well as the good people of Tennessee. If that were the only challenging event of the week, it’s already too much. But the week started with the Iranian nuke deal and we have to mention the Planned Parenthood scandal. Stay with me for a minute, it all ties into social mood.
A week ago financial markets survived the twin financial disasters that were Greece and China. As a quick summary, calculations were not there for a low on the Greek "No" vote but were there when China dropped the other shoe. But one can make an argument China is still a faraway place and their misfortune really doesn’t affect us. Many of us know better individually but collectively the madness of the crowd doesn’t when the VIX never hit real fear levels. But I did tell you equity markets were setting up to add to early gains. It was an incredible week as prices went further than anticipated.
The key day was Wednesday when tech had one last chance to validate the 1597 day window off the 09 bottom. The Nasdaq was sitting right near the 161 extension and could’ve stalled right there but didn’t.
If you play this one strictly by the book it was already a 261 extension at 4620 and they are way beyond that. By Sunday night the move was already 144 hours in duration and it still wasn’t pulling back. It rallied all week and we didn’t see the usual profit taking on Friday nor were traders concerned about buying over the weekend. All bullish signs. Right now I’ll look for a change of direction at the usual suspects either 144 or 161.