The Gilmo Report

December 12, 2018

December 12, 2018

Insane volatility and price velocity remain the order of the day, combined with overnight futures jacks and futures declines. To get some sense of how crazy things are, leading up to today the Dow Jones Industrials Index posted end-to-end intraday swings, starting with yesterday’s move and going backwards, of 570.2, 613.44, 810.84, 708.79, and 765.01 points.

The net result has been a sharp, rapid drop from last week’s highs when the index cleared the 50-dma. This led to an undercut of the prior October and November lows by the NYSE-based indexes that created a short-term low on the undercut & rally move. Yesterday, a rally early in the day was sold into, and it appears that these big, news-triggered gap-up rallies are in general being sold into.

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