Since I first posted the comments below, the ES did indeed pull back from the first resistance level and reclaim sub 3420. But they immediately retraced to that line.
Dare I say that this level now looks pivotal? The 2-3 day cycle projection still points to 3450, and hourly cycle indicators have not yet flashed clear sell signals.
Earlier at 3:15 AM in New York it looked like this:
It sure feels as though the S&P is headed for the 3500 level again over the next few days. But the hourly chart of the ES fucutures shows that there are obstacles in the way.
The first of these is right here in the 3433 vicinity as of 3:15 AM ET. Then there’s 3445-3450.
These are the resistance levels where we’d look for this surge to end today or tomorrow.
The 2-3 day cycle projection is 3450, implying that they’ll get to the uppermost trend resistance line.
Bears would need to reclaim a sub 3420 reading to have a chance of getting anything sustainable going to the downside.
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Here’s the latest weekend update from my Technical Trader reports.
Mixed cyclicality has led to a rangebound market. There’s no sign that that will change this week. But look out if it does!
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And from Liquidity Trader, where I’ll post another update later this morning.
Primary dealers have maintained huge and heavily leveraged long bond positions. They are only lightly hedged. Just today, the bond market is threatening to reverse the long term downtrend in yields/uptrend in prices. It’s bad news for the bond market, and for the system as a whole. And that includes stocks.
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