5 day cycle indicators edged to the sell side again, early in the overnight session of the S&P fucutures. As has been its wont lately, the market dipped a little, right to a lower trend channel line, and stopped, in the last hour (as of 5 AM ET). In the hour ending at 6AM, that line is at 4255. As of the NY open, it will be at 4259. That needs to be broken, or the down phase will stay flat to up, and the next up phase could lead to massive, epic breakout.
Or it could just stumble drunkenly higher bit by bit, as it has been doing. The top of the current channel is now at 4266. That’s a ridiculously small move give the current price level. And even if they clear that, there are more R lines waiting at 4272, 4275, and so on, and so on.
So I don’t blame people for taking vacation early. This market is a joke, a simulation, courtesy of the Fed.
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