Originally posted at The Stool Pigeons Wire.
The chart is just so ugly. ES is back at the top of the downtrend channel again. The 5 day cycle projection is 3910. So that strongly suggests that a breakout is coming soon to a screen near you.
Click to engorge
But if they’re going to 3910, they need to get through layers of resistance up the wazoo. The first is here at the trendline at 3865. Then 3880. Then 3895.
The positions of the indicators don’t exactly inspire confidence either. But the Treasury is pouring $25 billion in cash into the market today with T-bill paydowns. Then on Thursday it will add another $30 billion. Call it a full court press.
Meanwhile the big picture:
