It’s 5 AM in New York. Do you know where your ES S&P fugutures are? Well, after pulling back overnight, they’re back to attacking, and as I write, slightly breaking, one of the many downtrend channels that have contained it for the past two weeks. The question now is whether they can sustain and extend this tiny breakout. I think the number to watch now is 4400. Because, as I told you before, whoa, you can’t do that.
If they doodoo it, then the next benchmark target, and another potential launchpad would be 4418. If they fail to clear 4400, it would be just another high, and the sellers would come storming back. Then we watch what would happens as the pullback attacks the bottom of an incipient uptrend channel, most likely around 4460 in the mid morning to mid day in NY.
I thought it would be interesting to look at an hourly chart of the 10 year yield. Thing of beauty, it is. Obviously, if it clear 1.81, it will go back to test the high. After that, the sky’s the limit.
I thought I’d go the other way in Crapto World, looking at the Buttcoin Long Squeeze Out from a monthly bar perspective. Obvious strong support around 30k, 28k, 23k, 17k, 3200, 1200, 200, and 2 dollah.
Looking at the very long term oscillators just rolling over, I suspect that this will be a long and winding road. Breaking the first support level at the neckline of this top pattern around 28,000 would have a measured move implication of negative 5,000. I don’t think it will get that low. There will be strong support at zero.
Looking at gold on an hourly basis, it’s an untradeable shitmess.
But when you zoom out a bit, you get the sense that something might be happening.
Accumulation? I will post an update of the weekly gold and precious metals stock outlook and chart picks tomorrow at Liquidity Trader. You can try that service risk free for 90 days if you’ve never subscribed.
Finally, my US doodahs are looking good for buying more gyros over here in Gyroland. Next week I’ll be changing over to croques messieurs. If the euro breaks $1.12 the next target would be $109.50. Here’s the daily bar view.
And now (Paul Harvey voice) the rest of the story:
Our Chart Pick List Was Short Up the Wazoo, Woohoo! Now What?
Fed Will Administer Volckera to Cure Inflation Pandemic, and We’ll All Die
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