This is an unraveling puzzle that has taken almost eight years to reveal perhaps only a portion of its many facets.
I am calling it an “Onion Pattern” because each time I uncover a layer, I find another fascinating layer.
Suddenly, markets are hitting trouble all over the place. I can’t tell you how many outs we have left but it appears we are starting to run low. We are coming to the slowest trading period of the year so I don’t think the market is in any imminent danger but I am starting to get concerned about what can happen in the fall.
Crude oil prices took a nosedive on Wednesday afternoon when the EIA published its latest supply data. Although this showed that crude stocks fell by a good 3.9 million barrels last week (which was the first decline since early January), oil prices were unable to advance any further than they already had.
We could have a new all-time high in the Nasdaq as soon as tomorrow. I don’t put the same weight about all-time closing highs that some technicians do but the highlight of the week was the closing high for the Nasdaq.