The ES, S&P 500 24 hour futures need to clear 4500 this morning or the bears can take control. Clearing that would open the way for a move back to 4520-30, where the bull case would be tested again. On the other hand, failing to clear would open the way for a straight shot to 4420. Wouldn’t that be fun.
A 5 day cycle projection of 4480 was hit overnight. The 5 day cycle last bottomed on Thursday, but the up phase has been puny. There was a lower low on Friday and they haven’t been able to get going this morning. Ideally, they’re out of time, with a 5 day cycle high due as I write this around 6 AM New York Time.
So the bulls have both a resistance challenge and a time challenge. Doesn’t mean that they can’t overcome it. But if the bears can’t succeed today with these factors in their favor, it’s curtains for them. Curtains I tell ya. Under the Big Top
Meanwhile, watch out. The 10 year yield looks headed for a breakout, and dealers are still plenty net long bonds. Not good. Let the Scary Pictures On Primary Dealer Financing Do the Talking
For moron the markets, see:
- All We Need is a Few Good Shorts August 7, 2023
- Under the Big Top August 7, 2023
- More Supply is Just a Lie But Withholding Weakens August 4, 2023
- Gold’s Pain in the Bottom August 2, 2023
- Thanks But No Thanks August 1, 2023
- Let the Scary Pictures On Primary Dealer Financing Do the Talking July 31, 2023
- Correlations Don’t Matter Until They Do, Like Now July 23, 2023
- The Fed’s Slush Fund is Working June 16, 2023
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