As you may or may not have realized we did not break the 7/12 low in the ES_F of 1295.25, not to say this is not impossible today by any means. What told me the spoos would remain weak was crude oils weakness despite the nasdaq strength, sure enough this proved correct as the correlations snapped back to congruence.
The HF crowd sucked in the buyers the last hour Friday once again only to slam down their throats after tickling their hope the first 25 minutes of regular session. The chart to the right is a 1 hour of the S&P futures contract, 1300 was and is the lower line in the sand.
With the debt ceiling issues still swirling and a global economy still unsure if it is in a recovery or a depression its is no surprise equity index’s are having upside momentum troubles.