That’s not a laughable concept anymore.
As expected, the 5 day cycle bottomed yesterday. It did so just a hair below the sport lines we pointed to in the pre market yesterday. So far, nothing terrible has happened yet. Today doesn’t look like the day either, unless you’re a bear, in which case all days are terrible. This market just won’t knuckle under to common sense. Sorry, it doesn’t work like that.
So we should expect a 5 day cycle up phase to benefit stocks until tomorrow. The ES, 24 hour S&P futures should head toward resistance around 4150. If it gets there, a conventional measured move would suggest a target of 4180-85. Getting there would suggest a subsequent drive to 4205. That’s where the market will hit the roof, so to speak.
Meanwhile, the base breakout on the 10 year yield suggests a target of 3.98. That’s not a good thing. For anybody. Modestly Hedged Dealers, Record Short Hedge Funds Suggest Disaster Ahead
For moron the markets, see:
- Modestly Hedged Dealers, Record Short Hedge Funds Suggest Disaster Ahead May 25, 2023
- Non Functional GPS Market May 22, 2023
- Swing Trade Chart Picks – Let’s Get Ready to Rumble May 18, 2023
- Gold’s Immaculate Correction May 19, 2023
- The Most Widely Forecast Economic Disaster In History May 16, 2023
- Weak Real Time Withholding Taxes Set Up a Showdown May 4, 2023
- The Big One is Coming May 3, 2023
- Enjoy the Market Mirage Now Because We’re Really In a Desert April 24, 2023
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