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Daily S&P (ES) Chart Setup Quickie 5/27/20

The daily chart for the S&P Futures (ES) looks impressive as hell, if you are a bull. For bears, it’s Wagnerian.

Oh, wait, just one thing. 3040 is the top of a flattish uptrend channel dating from April 22. And there’s a pronounced negative divergence in momentum. In itself, that’s meaningless. But there’s a smaller one that has developed since May 19. Maybe they’re trying to tell us something. Like, if the futures roll over below 3040, GTFO.

Liquidity moves markets!

Follow the money. Find the profits! 

Of course, if your’re short and this breaks out above 3040, then maybe you should consider GingTFO because the immediate target thereafter would be 3100.

S&P Futures Chart May 27

This is for the perspective of one day only. The purpose of these reports is not to divine the longer term. If you want longer horizons, I cover that in the Technical Trader service at Lee Adler’s Liquidity Trader. 

Here’s a 5 hour bar chart. Gorgeous. It looks bullish as hell, but there’s that negative momo divergence again.

S&P Futures Chart May 27

On the hourly chart, the Hurst 5 day cycle projection is 3040. The high so far this morning was 3035. Close enough for government work. Trend resistance is around 3035, 3045 and 3050 currently, but all are rising sharply.

The indicators are bullish.

Reminder- I’m only talking patterns for a day here. This is not the big picture. If you want that story, you must subscribe. Risk free trial and all.

Join me on the Capitalstool.com message board today and I will update you there occasionally during the day. Feel free to join the “fun.”

Meanwhile, here are the latest reports from Lee Adler’s Liquidity Trader.

Here’s Who Loses When Technical Indicators Are Bullish but Liquidity is Bearish

Bullish indications mean that we must assume that the bulls remain in control until proven otherwise, regardless of the bearish liquidity forces (See latest Liquidity Trader report) over the next three weeks. A bull move in stocks would raise the specter of a selloff in the bond market to support a stock rally, because there won’t be enough cash around to support rallies in both. But that’s not our problem.  We just need to be on the right side of the move, whatever it is.

Technical Trader subscribers, click here to download the report.

Not a subscriber? Try Lee Adler’s Technical Trader risk free for 90 days!  

Primary Dealers Go Hog Wild Net Long Treasuries

Back in December I had no idea that a pandemic was coming. I had no idea that COVID19 would cause Treasury supply to increase 10x. Nor did I know that the Fed would buy all of it at first, and then that it would experiment with cutting back until “who knows what.”

Let’s be clear about one thing. The Fed did not swing into action to rescue the US economy from depression. The Fed’s first order of business when the SHTF was to rescue the Primary Dealers. Which it definitely did.

Subscribers, click here to download the report.

Get this report and access to past reports.  Read Lee Adler’s Liquidity Trader risk free for 90 days!

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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