Our analysis continues to be a rising wedge in a market of confusion and chaos. The excursion downwards is breaking the trendline (besides that broken line we have already pointed out –not shown here) and should augur further price deterioration. This is in line with conventional wisdom that prices break down from a rising wedge. It is strange to us that contrarians have not yet mounted a strong attack on the market. Maybe they are distracted by Caitlyn, FIFA (or as we refer to it, #thiefa) and women’s soccer. Sepp is right. If the players wore bikinis women’s soccer would get a lot more attention. We have an uneasy feeling that the dominant paradigm is about to get subverted. Also given volcanos and typhoons an explosion might be in order.
Indicative of the strangeness there have been two traps in the PnF system in the immediate past–a bear trap and a bull trap. The boxes indicating these are in the second and third columns from the right. Ordinarily these would be buy and sell signals for us. We looked askance as we have been suspicious of this market for some time.
We have noted the broken trendlines in the SPX bar chart. Note also that the PnF price is sitting right on an important trendline. We are not optimistic.