The ES fucutures are gearing up for another breakout here at 11 AM in Europe, 5 AM in New York. The 2-3 day cycle projection of 3965 would break the old high of 3959.
There’s an indication of potential trend resistance at that level. But once they cross that, then the next potential minor resistance zone is around 3980. That probably would not hold for long. There’s more serious trend resistance at 4020.
The Treasury settles $99 billion in new coupon paper today, but it pumped $55 billion into the system last week via T-bill paydowns and it has another $44 billion in paydowns coming tomorrow and Thursday. Now let’s see. New issuance of $99 billion in coupons, and paydowns of $99 billion. Must be coincidence. 🤨
And lest we forget, we’re in the middle of Fed monthly MBS settlement week. The Fed is pumping in another $131 billion in cold cash directly into Primary Dealer trading accounts at the Fed in the March 11-18 week. $87 billion of that came last Thursday. The rest comes today and this Thursday. You can catch up in the latest in depth report and forecast at Liquidity Trader.
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This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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