|5 min ES|
The comical melt up this morning into 1220 was now in hindsight a gift from the market gods (hindsight yes, though fading was my idea from the get go) The bears took full control of the tape after 1220 failed and price sliced through 1210
Once the bears took control the day ended up being a barn burner in regards to price action… volume wise not so much. NYSE volume well under 1billion shares with most of this volume being done in the name BAC which broke the psychoTechnical level of 5. With BAC being a NYSE name and a heavily weighted component of the S&P when she falls through akey level the whole markets follows and sentiment quickly changes.
Kicking off the last hour WE saw this as the S&P futures break the 1200 level kicking out many sell stops down to the 1198.50 metric which indeed failed down to 1195.5…. Momo hard to stop when u have a big name like BAC and the XLF rolling.
My take on the rest of the week remains very technical with my ear to the squawk because headlines can move a holiday market very sharply as volume declines into Friday’s half day. The 1200 level is very sticky, which means we may well chop around the metric until after the holidays are over. After today i expect some back and fill though if we see greater dollar upside we could break down into a 1180 1195 trading range heading into the new year. In the chart above you can see the support/resist pivots from previous consolidations within the large falling triangle have been lining up quite well.
|30 min ES|