Looks like the 3:30-4:00 pm Daily Ramp has saved the /ES back to support-only mode, with only that record high standing in the way to continued wealth effect for the consumers of America. We’ll ignore, of course, the low volume of that HUGE green candle from yesterday. Volume doesn’t seem to matter anymore, only buying.
Technically speaking, that /ES chart looks pretty bullish for today. It looks like today might end the Red & Green Show with a double green. But, it’s still early and I haven’t had my coffee yet.
Yesterday’s range was blown out to the upside, and overnight has been consolidation at the new support level of 1559. Target for today on /ES is that record high at 1567.75 unless it’s a breakdown to 1554. There’s also weak resistance around 1563 from the overnight trading that needs to give first.
I like to compare the Russell as a leading indicator to the S&P. The side-by-side image above shows a bit more weakness on the /TF. For now, this looks like a hint of further consolidation in the /ES in the days to come instead of a quick return to the New Normal buy-only stock market.
Ok, I’m going to go get that coffee now…
