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Stocks are on a roll. The 5 day cycle projection on the ES, S&P 500 24 hour futures has risen to 4115. This morning’s high of 4108 is close enough for government work, especially in view of the fact that the conventional measured move target of the base breakout was 4100. The breakout from the higher base this week only pointed to 4085. So the bear killers’ work is done here. The shorts have been squeezed to a pulp.
If they do manage to pop this boil at 4109, then multiple resistance trendlines at 4120-25 should be the endpoint.
I suspect that will now leave a vacuum of demand, as bulls alone will lack the firepower to keep this going without the shorts. I cover the reasons for that here. Look, it’s not bedtime reading. Unless you like having nightmares.
To understand and profit from the big picture check out the following.
- Gold Has Made a Bottom July 28, 2022
- The Bond Rally That Fooled The Majority And Didn’t Help Dealers July 27, 2022
- Swing Trade Screens – Surprise, Surprise – A Few Shorts July 25, 2022
- Gonna Take You Higher, But Not Too Much July 25, 2022
- Catch a Falling Knife July 19, 2022
- Survive the Meat Grinder and Market Will Gladly Pay Us Back on Tuesday July 18, 2022
- As Good As it Gets, Before the End of Time July 18, 2022
- Are the Fed and Treasury Geniuses, or Just Lucky? Part One July 12, 2022
- Recession? What Recession? July 5, 2022
- Stocks Are Even More “Dover Sole” Versus Liquidity June 28, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
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