Chart traders like round numbers, and they’ll set their algos accordingly. Shorts will set orders to cover at ES 4000, and bulls would like to buy there. So look for 4001 on the ES 24 hour S&P futures, and around that number on the cash. 😉
In fact, that’s what the 5 day cycle projection points to. Wait for it. Wait for it.
First they need to break a few trend sport levels. Like 4040, 4020, and 4005. On the upside, if they push it through 4100, bulls’ ball.
Meanwhile, buttcoin, continued its slow irregular track to its top pattern breakdown measured move price objective, and intrinsic value, of zero. If it doesn’t stop dropping right here at 33,600, the proximate target would be 30k, and it should get there fast.
Meanwhile the US Central Bank is about to start removing doodahs from the world banking system, while the European Central Bank hasn’t even thought about it yet. So the currency of the ECB, aka the geuro, which you can get on pita bread with tomato, onions, tzatziki, and fries, keeps getting cheaper for holders of US American doodahs. Next stop on the geuro is $1.04, and when they break that, the only question will be how fast it gets to parity, or party, with the doodah.
But the real catastrophe of the day is this one. If you own bonds, I can only ask WHY WHY WHY! I’ve been inveighing against them for 18 months!
The 1 year cycle projection on the 10 year Treasury is now 3.55.
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
For the big picture:
- Buys Beat Shorts in This Week’s Swing Trade Screens May 9, 2022
- Big Tops Lead to Big, Bad Bear Markets May 8, 2022
- April Tax Collections Still Running Red Hot Mean That Fed Must Get Tighter May 4, 2022
- Time to Catch Gold Knives May 3, 2022
- The Fed is Tightening Into a Sheet Storm May 2, 2022
