Morning update:
The VIX drops 20, ES pushes above 1390. NYSE up volume is 15 to 3 versus down volume, this is a big day for bulls, although those yields are still stuck at 4.03%. The NQ January gap close is at 2077, weekly R1 at 2064 and June highs at 2054, support is now 2034.75. ES 20 dma is right at 1398. The big winner is the RUT, pushing small caps above that key 750 level. Weekly R1 for ER is at 759.80. Money is being put to work in equities as everyone bets on a bullish non-farm payroll tomorrow. Even though the VIX lost 20, it looks like it is holding yesterday's lows at 19.76, still giving us bearish divergence signals.
ISE equity is at a frightening 270. That is not quite the wall of worry bulls were hoping for in order to have a sustained upside move. For now, don't argue with price, but no all clear signals from bonds and the VIX, so be a little careful. Watch ES 1387/1389 on any pullback.
The VIX drops 20, ES pushes above 1390. NYSE up volume is 15 to 3 versus down volume, this is a big day for bulls, although those yields are still stuck at 4.03%. The NQ January gap close is at 2077, weekly R1 at 2064 and June highs at 2054, support is now 2034.75. ES 20 dma is right at 1398. The big winner is the RUT, pushing small caps above that key 750 level. Weekly R1 for ER is at 759.80. Money is being put to work in equities as everyone bets on a bullish non-farm payroll tomorrow. Even though the VIX lost 20, it looks like it is holding yesterday's lows at 19.76, still giving us bearish divergence signals.
ISE equity is at a frightening 270. That is not quite the wall of worry bulls were hoping for in order to have a sustained upside move. For now, don't argue with price, but no all clear signals from bonds and the VIX, so be a little careful. Watch ES 1387/1389 on any pullback.
This entry was posted
on Thursday, June 05, 2008 at 6/05/2008 10:18:00 AM.
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