Pennant Race

Sometimes you picture me
I'm walking too far ahead
You're calling to me, I can't hear
What you've said
--Cyndi Lauper

After the volatile action we've witnessed over the past couple months, many traders have likely viewed the market's mellow meander over the last couple sessions as a welcome holiday gift.


The technical picture indicates that we've been consolidating for a few weeks. The flag, or pennant, pattern evident in many indexes such as the S&P 500 (SPX) will be resolved soon.

How prices break (up or down) should offer an idea for where the tape's headed in the near term.

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