First published at Capitalstool, the Stool Pigeons Wire
As far as the day trading setups are concerned, yesterday was obviously a low of sorts. But there has been no evidence of repeating cycles of any recognizable length for the past couple of weeks. Furthermore yesterday’s low blew out 2-3 day and 5 day cycle projections for the low. So it’s safe to say that yesterday was a news noise reaction that caused some disturbance in the force, aka distortion.
The rebound has hit an apparent resistance trendline at 4410 as of the 5-6 AM hour in New York. That line descends to around 4405 at the NY close at 4 PM. If it is broken, and they hold above 4410 for a few hours, the next target looks like 4420, woopdedoo. If they clear that, then 4445 next.
If they can’t clear 4410 this morning or 4405 this afternoon, then we are mostly likely looking at a fast more into the 4370s or 4360s.
Trouble in bond land. The 6 month cycle projection is 4.35. The conventional measured move target of a breakout through 4.10 would be 4.80.
The hedge funds are heavily hedged but Primary Dealers are only lightly hedged. This is going to be trouble. It’s Not Your Daddy’s Liquidity Anymore
