A little trick with backlighting, this painting on rice paper will change color and luminosity with the touch of a dimmer.
I’ve brightened it up with photo editing to make it glow blindingly (if you stare at the middle too long.)
Why? Because the market found its own backlight on Thursday. And, some invisible hand coming from somewhere adjusted the market’s luminosity to an almost equally blinding glow.
Amazingly, the market seemed to ignore the continued decline of the 20+ Year Treasury Bonds as if to say, “We get it. You might raise the interest rates. Blah, blah, blah, blah, blah.â€
Furthermore, perhaps on the heels of Biotechnology’s glowing rally this week, so many other instruments lit up.
Donning her golden cap, Sister Semiconductors and her on again off again relationship with Nasdaq, led the market higher. SMH has done so since that famous runaway gap on July 18th.
Will we now look back at this recent correction as the Dow’s inevitable retest of 18,000, the terror point? Was it that Semiconductors became oversaturated with bullishness that she needed to shake out the weaker longs? How about Biotechnology’s double bottom at 240?
Yesterday, the Russell 2000 (IWM) confirmed a warning phase, had negative floor trader’s pivots and traded below its declining slope on the 10 daily moving average.
Today, the invisible controller of the dimmer, turned up the lights and brought Gramps back above the 10 DMA and back into an unconfirmed bullish phase. (It needs a second day to confirm.)
In fact, everyone in the Modern Family blazed to varying degrees. Biotechnology, which began Monday with a bullish engulfing pattern that had not confirmed nor failed until today, finally traded above 290. Dazzling sheen!
Regional Banks (KRE) and Transportation (IYT) gained. Nowhere near as luminous as the others, they at least held critical support. Now, the invisible hand must push up even more on the toggle to keep them from dimming.
