Friday’s low on the ES was a fraction higher than Tuesday’s, but as of 5 AM in New York, they hadn’t cleared Fridays high. Hourly indicators were still bullish, but they’ve paused and a deeper downtick this hour could get them to roll over, signaling a 2 day cycle high in the pre market as well as potentially a final downdraft in the 5 day cycle. That cycle is ideally due for a low on Tuesday, but a low today is certainly also possible.
If they hold above 3360 here, bulls are in charge. Even if they pull back to 3330, I think bulls would still have the upper hand.
The Fed pumps in a ton of money today via the first of the usual monthly MBS settlements that happen in the middle of each month.
Mr. Minus-chin Conspires With QE for September Happy Ending
UPDATE 10 AM ET
Oop there it is!
There’s your higher high.
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The June selloff was 265 points high to low. So far, the current selloff has hit 278. Bigger? Nope, not in percentage terms. This one is -7.7%. That one was -8.2%. So, we can still say that this time isn’t different.
Yet. But there’s smoke. Plenty of it.
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