The S&P 500 put some pressure on the ascending trend line in the morning today but couldn’t achieve a decisive break under. Now experiencing a probe of overhead resistance after the failure to push lower. Keep an eye on 3958 and 3971 in the late afternoon. Even higher is possible but in no way required.
Here is a 15min E-Mini Nasdaq 100 futures chart with some geometry applied. NQ not nearly as bouncy as the S&P and Dow. NQ has really spent all morning trading sideways. I favor an eventual push lower but need not be in a hurry.
Euro might finally have a small impulse down from a lower high from yesterday. A shallow retrace target is at 1.0849, a deep one at 1.0900. I think the implication of Euro weakness, DX strength will be downward pressure in equity markets.
Crude broke lower in the early morning but has recovered. Not sure what I think about this. Perhaps this is just a bounce back to retest the break under 69.50 prior to moving lower.
Doing a quick look at gold, we see it is starting to break under 1985.80 which is consistent with the hypothesis that gold should be ready to reverse lower and returning DX strength.
ZB is putting stress on the idea of a lower high as it nearly retests the last swing high. Perhaps a virtual double top but bears don’t have anything to work with till price drops back under 132^06.
Have a good weekend!