Although the indices can move higher, we are witnessing an exhaustion point – Institutions are net sellers, the FED/ESF net buyers. Volume is near absent – Volatility only remains in the most liquid instruments – Energy & Currencies.
2575 remains the potential target for the ES – this places the SPX @ 2578/9.
China is reportedly beginning their new Yuan based contact for Oil tomorrow…. convertible to gold purchased outside of the SGE – ie. Global Markets.
Martin Armstrong believes 23,700 is possible for the DOW on this move.
I do not… Marty is plenty wrong, as are we all. Socrates issued 4 intraday warnings over the last week… 2 – Potential Sells, followed by 2 revealed targets for DOW and reduced risk profile as support lies at 20,000K now.
“risks not extraordinarily high…” – we are above last weeks highs and have a gap below.
1575/80 ES opens on a close over 2555.75 otherwise we close 2553.50ish and progap and go Monday.
It’s been the pattern with Mondays… easy Cheat and further squeeze. Janet Yellen tee’s up Sunday afternoon prior to open…
The Bid remains extremely strong… closing basis – always.
New to the message tracks over the past few days is the increasing din of “Extended Markets” and “Expensive” – two traits no Bull wants to hear…
With Buyers hovering at the SELL F12…
It’s going to be an interesting close to the month of October.
There are a great many gaps below.
Inventory numbers will be out @ 10:30 EST ~ 50 minute time.
The way the tape has traded all week it seems the ESF/FED are concerned about this market running away on foreign inflows while US Banks park capital outside the US…
Yellen speaks on Sunday… suspect there is a surprise within her remarks.
A retracement is pending, a larger one that will provide opportunity when this market finally congests and lift’s off.
For now, it’s looking s great deal like we’ll be heading down into November/December – perhaps we make a new high, perhaps not… it’s not looking healthy for the Bulls.
Gold has been bid heavily since last Friday, there remains a firm hand under the market.
Pullbacks are to be expected – 1272.25 remains an important area. We did not see price dip-in to the 1240s – ideally 1246…
Silver has been outperfroming Gold – an excellent sign. The bid under Silver remains extremely strong.
Targets – barring a break of support, are north of 1400 for gold and 20 for silver.
The Minutes with CPI and Gold breaks daily resistance – target 1401.80.
Sitting today out and watching how it all behaves as it’s Monday.
1575/1580 is the ES target for the week – 22912 for the YM.
Gaps remain – correction ahead imho.
Both the ES & YM have been steadily creeping up on light volume.
A number of spec shorts entered well below 22700…
Will be an interesting close.
Pains me to say this as it extends the Bubbles in everything.
Look for 2575 into OpEx as the next Daily Target.
The first payroll drop in 7 years returns – 6 handles on the ES.
Were this a decade ago we’d be down 20-40 handles and that would equate to 3 to 5%…
Remarkable how controlled this mess of a market remains – it will likely get much worse prior to it normalizing. Perhaps it won’t until it simply implodes.
Gold staged a rally to its .618 retirement target. Holding off to see how 1240s trade.