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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.
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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