Europe first bought the news that a US government shutdown had been averted. Then they started having second thoughts. US traders have started sitting at their screens in the past few minutes and the added to the selling, but without reckless abandon.
There are still 45 minutes until premarket trading opens at 8 AM, and 2 hours 15 minutes until regular trading starts. As of now, uptrend channel spport is around 4286, moving up about 3 points at the NY open. If that line breaks, the initial target on the ES, 24 hour S&P futures would be around 4265-70. If this line holds, then a triangle pattern would be in force. They’d need to clear 4310 by noon to turn this into a bullish launch.
Hourly indicators are bearish. On the Lookout for Big Low
Meanwhile, the 10 year Treasury yield remains the barometer of bond market mayhem, as it heads toward an apparent date with 5%. Leveraged bond portfolios held by dealers and banks are in disastrous shape. Dealers are hedged to some degree, but we can imagine that some are hanging out there. The banks aren’t required to mark theirs to market, so extend and pretend can still be played for the time being. The Rhymes of History
For moron the markets, see:
- Screen Picks – Definition of Insanity Exemplified October 2, 2023
- On the Lookout for Big Low October 1, 2023
- Gold on the Brink of Secular Trend Sell Signals September 27, 2023
- The Rhymes of History September 24, 2023
- Beware! Jobs Really Much Weaker Than They Say September 4, 2023
- Here’s Why This Is a No Clickbait Market for Primary Dealers August 24, 2023
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