Good morning! Yesterday the ES 24 hour S&P futures broke down from a recognizable top pattern. The initial measured move implication was 5775. That was done. However, the breakdown also took out a second spport level, which implied a target of 5750, not done.
Overnight, the we had the traditional return to the scene of the crime rally where the market returns to the breakdown line. That’s where it stands as I write, approaching 6 AM ET.
There’s a critical resistance convergence at 5830 as of 7 AM ET that should be the signal point for whether the rally continues or the downtrend resumes. It may take several hours to resolve that.
In favor of the upside, the 5 day cycle is due for an up phase, and hourly cycle oscillators are on the buy side.
Swing Trade Screen Picks – Letting It Ride
Over on the fixed income side, Treasuries have suffered a horrendous selloff over the past couple of weeks. There’s been a rally this morning that brought yields down a tad, and short term oscillators suggests that the market is due for a bit of a rally. But this remains a dangerous situation where contagion into stocks is possible. Liquidity Measures Show Markets Stretched to the Limit
In precious metals, soaring gold has run into trend resistance and is near a key cycle projection. Gold a la Mode
In FX, the EUR/USD has reached a spport area. Daily oscillators look bottomy. I’ll leg in here.
Over on the planet Cryton, they’ve reached another inflection point in the 7 month consolidation pattern. Is it a high base, or is it a top? Stand by for decision.
For moron the markets see:
- Swing Trade Screen Picks – Letting It Ride October 22, 2024
- Liquidity Measures Show Markets Stretched to the Limit October 21, 2024
- For More Upside October 21, 2024
- Gold a la Mode October 18, 2024
- Liquidity Says, The End Is Nigh, Almost October 16, 2024
- Get Your Red Hots Here October 3, 2024
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