Market Note For Tuesday November 13 – $ES_F
Another day of consolidation or you could say “price paralysis” over the 1370 level with 1363.50 remaining the low so far this week. We are currently looking for a pop over the 1375 level with a possible conversion into 1390 if 1375 is holds constructively as support in the coming day’s and more likely, hours. under 1370 the ES will become heavier and heavier the longer it moves sideways without breaking lower or higher.
|1 hour ES_F|
Under 1363.50 means 1350, much of this will be hinged on bond flows, which did exhibit lower volume today compared to Friday. If bonds keep rising equities will become increasingly easy to push around. In my opinion much of the market is kept aloft by algorithmic schools of program trading fish and not so much real bidders who are accumulating stocks.
|15 min ES_F|
As capital continues to move out of equities and into bonds the greater the probability for large swings in price because those who are left trading equities are up against very thin bid/asks. The fixed income market is hell of a lot larger than the equities market, yet the equities market is more participated in when looked at on an individual trader standpoint.
|30 min CL_F – january|
Crude (Jan contract, December rolls in 2 days) remains bullish over 85.50 with a failure of 85 being worst case scenario for long bias. If 85 gets sold we could surely bet equities will follow suit…. 84.57 Tuesday’s low.
Headline to headline market. Trade it accordingly.