Menu Close

Refusing to Give Up the Ghost- 5/11/23

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

No that is not a political statement. Although it could be. Sadly. It’s about the bulls, and the direction of the market.

The flat squeeze goes on. Not that we should be surprised. There’s been plenty of liquidity around over the last month, but traders have just been sweeping back and forth through this cleaned out range. Nobody wants to risk cash above resistance, and bears are covering their shorts when the market pulls back to sport levels.

It is, after all, sport.

In the very short run, where our focus is on this thread, why should we expect anything to change? Uh, no, we shouldn’t. In the big picture, it will change, but here and now, not likely. Yet.

In terms of today’s outlook, the 5 day cycle on the ES 24 hour S&P fuctures has been running 4-6 days, which is normal variation. The cycle entered and up phase after yesterday’s late selloff. That up phase could top out any time from today through Monday. There’s a 2-3 day cycle projection of 4175. It’s iffy, but the hourly cycle oscillators started the move from near the zero line, which usually translates into a big move. So I’m thinking second wind coming. If they clear 4158, look out above.

I won’t bore you with what bears need to do to get anything going. The chart is clear about sport line after sport line below where we are now as of 5:30 AM ET. If they test the high and roll over, with cycle oscillators turning down from below the prior peak then we can talk.

100n9k

Meanwhile, bond land is loving it some 3.20 to 3.60 on the 10 year. The permanently low plateau goes on. Here’s what should happen. Be prepared.

100nda

Attention gold fans! Should we be worried?

100ngv

If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam folder.

For moron the markets, see:

If you’re serious about the underlying forces of supply and demand that drive the markets, join me!

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading