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3&5 Day Cycles Down Overnight. Low Due This AM – May 35, 2020

This is a syndicated repost courtesy of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Reposted with permission.

Good Morning. It’s May 35, 2020 and here’s how it looks today at 5:30 AM New York time.

Liquidity moves markets!

Follow the money. Find the profits! 

Hourly ES

5 Hour Bars

The .786 fiber nacho reflux level of the entire selloff on the ES is 3131.74. The high of yesterday’s bar was 3129.50.

First bounce pivot high on the way down was 3137. There were also multiple trendlines around the level of yesterday’s peak. Of course, they’re all rising. But there was at least some reason to expect a pullback.

ES needs to close below 3087 today to break the 3 week uptrend channel on the daily. The uptrend line from the bottom is around 3030 today.

Give us this day our daily bars.

This is just the intraday stuff. For the big picture, including longer term trends, cycles, and price cycle projections see:

Bullish as Hell, But Wait! What’s This?

The Fed is no longer pumping enough money into dealer accounts to sustain bull markets in both stocks and bonds, and it has tried to steer investors out of stocks and into Treasuries. It doesn’t matter. Rising markets create their own liquidity until they don’t. It’s called margin. Technical analysis shows us the effects of that, tells us what the trend is, and indicates when it might be reversing.

The trend is up, and there’s no sign of reversal yet. However, after reviewing my chart pick screens I came up with twice as many shorts as longs. Is that my bias, or are those individual charts trying to tell us something, the first canary singing?

Here’s what we’re watching.

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10 Year Treasury Yield Look Out!

10 Year Treasury Yield broke its 13 week MA but has not yet cleared the range. Massive implications if it does. See:

The line items of the Fed’s Pandemic Panic Emergency Programs get a lot of media and anal cyst attention these days. What a waste of time and energy. Let me explain why.

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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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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