On February 7th, I mentioned the tale of the tape would resolve itself one of three ways. It was going to break UP (but that would be hard to do), be trapped in a box (No Doubt), or we’d (in the famous words of Tom Petty) BREAKDOWN. Tom Petty has prevailed. The breakdown has occurred.

Peace

Go ahead and give it to me

Deep Thoughts With Mister Volatility…

Tomorrow the market will do one of two things…
If it doesn’t do one, it will probably do the other

Peace

Are you hoping when you should fear and fearing when you should hope?  Fear and hope are strangely intertwined emotional states.  Next time you feel either, think about whether you should be thinking about the inverse.

The market did not do too much today.  The S&P 500 ($SPX) is destined to break down through support from December 29th at 857.  I am not sure if it will fall through gradually or suddenly.  Whichever way, nature’s math will prevail.  It has no choice.  It is written.   Stay tuned to Trade the Picture.  You’re on the right channel.

S&P 500

What is nature’s math?  I’d describe it as the circadian rhythm of the universe.  Nature’s math is the foundation of all we are.  The building blocks of everything, from waves in the ocean to biology to fashion and market trends.  Everything beats to the same rhythm.  Strange place.

We live in Hyperspace.

Peace

The Swim

VTI is a gauge of the overall US equity market.

Notice how the voting mechanism is working on this run up. The price is moving higher, but the vote, the volume, is weak. That’s the tell on my recent call.

Peace

Look Out Below

Volume