POMO RULES NOTHING ELSE MATTERS
In this unique day and age we live in now where the Government completely controls the Stock Market, it is unclear whether or not what I have displayed above means anything. What this should mean is that the strength of the trend is weakening and a reversal is due. HOWEVER....
Virtually nothing like this matters. As long as the FED is on the POMO program it is unlikely we are going to get any meaningful decline. It is in my DNA to pay attention to things like this so I will not ignore it. I did make a mistake and try to short this a week or so ago and that was a mistake. It was a legitimate pattern and just did not work beyond the first day of the trade which was dynamite. I suspect most sell signals will befall the same fate for now.
We also have now seen the Will Trend indicator shift to a down trend which has not happened for a while as you can see clearly on the chart. I think the outcome of all of this is going to be more of a sideways move than a rally. The other markets have now separated from this as it seems the FED is mostly content now to let them go and just keep the stock averages high to maintain the illusion of the economy being sound. I have mentioned before that it might be a good idea to study the POMO days and the relationship of them to rallies in the ES. I think you will find that quite interesting.
I am an old school type but at the same time I acknowledge you have to adapt to what is happening now and the FED has completely taken over the US Stock Market. Do not fight this unless you do it with small size so you keep some powder dry for when we get a real decline. We will get one and it is going to be a biggy when it arrives, you don't want to be out of money when it gets here.
The net point today is don't short on POMO days or if you do keep a short leash on the trades. It is the new COT report and it is given in advance. They are basically saying we will launch aggressive buy programs in the ES on the days they state POMO is going on. What more could you want? Look for buy signals on those days. They put out a report in advance, so it is out there for you to find.