So we got the Dirty Rally I alluded to before Christmas. The imbalances I highlighted on December 23 called for a reconnect to moving averages off of the 2340 $ES zone and the 2001 analog structure suggested a 10% rally into late January. And a 10%+ rally we got, a rally even more aggressive than anticipated courtesy a suddenly dovish sounding Fed (see also The Ugly Truth.)
Example $NDX futures reconnected with their 50MA yesterday:
All good and well? Correction over? Get a China deal and all is well? Perhaps.
But there’s a signal chart that may suggest an intrigue to come.
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