Yo-Yo Effect

The S&P 500 has been doing it’s best yoyo impression over the past few weeks, with the Santa Yellen rally taking the index back into the vaunted “Death Zone” from which it promptly retreated. The volatility has formed some of the most bizarre market structures I’ve ever seen.

It’s very likely the market will now retest the 125 day moving average and possibly complete the corrective move that was underway prior to the most recent Fed meeting. Below are a set of charts from yesterday’s close.

S&P 500, 3 minute bars

S&P 500, 3 minute bars

S&P 500, 10 minute bars

S&P 500, 10 minute bars

S&P 500, 30 minute bars

S&P 500, 30 minute bars

S&P 500, daily bars

S&P 500, daily bars

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