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The ES fucutures dipped to spport lines in the overnight session in Asia, then the Europeans got to it, and lo and behold, they’ve rallied for the past 5 hours. Resistance is indicated 4366-69. If they clear that, then 4377-78. 5 day cycle indicators have turned to the buy side.
Then of course there’s the fact that today begins the regular mid month MBS settlement week, which this week totals $128 billion, of which a ridiculous $83 billion comes today. This is on top of the $20 billion per week of daily Fed purchases of Treasuries. The Primary Dealers with be flush up the kazoo with cash.
Meanwhile, here’s the chart as of 7:15 AM in New Yak.
Find the extended outlook at Liquidity Trader.
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