Friday The Thirteenth And The Roof Is On Fire

Hourly ES S&P 500 Futures Chart

As fast as they have come down, they have gone up twice as fast overnight. The S&P futures are now up 200 points from the low, as of 7:45 AM in New York. That’s 8% in a few hours. What a world.

Liquidity moves markets!

The futures are also now limit up from yesterday’s close. That limit is 5% in hours when the market is closed. Then it increases to 7% when New York opens. So don’t be surprised to see an opening around 2650. That, by the way, is also the location of a key trendline in the opening hour.

If they clear that, we’d be looking at 2700-2710.

Wouldn’t it be funny if the market got back to 3000 next week. It would be a 20% gain, and the pundits would be scratching their heads and their butts wondering whether to call a bull market after a 2-week bear market. Ah, the 20% Rule, from the Wall Street Bureau of Weights, Measures, and Dumb Propaganda.

Meanwhile, we also need to keep an eye on the overnight uptrend line, which in the next hour will be at roughly 2585-90. It will be around 2610-20 in the NY opening hour. If that’s broken, I’d look for at least a 50% retracement of the pop, to somewhere around 2500, give or take a thousand.

I’d add a LOL if it weren’t so sick.

ES Futures Hourly Chart

 

Momentum and cycle indicators turned up off mostly flat bottoms. Only momo had a slight positive divergence. Is it enough to support a good low? Not usually, but in this case, whoTF knows. I think we need a test at the very least.

Reminder- I’m only talking a day or so. This is not the big picture. If you want that story, you must subscribe. Risk-free trial and all.

So now, we have the expected 3-5 day cycle low. What about the next high? Could be later today, or Monday.

Our watchword for the past week: “There are no ‘oversold’ parameters in a crash. Indicators may rebound while prices have a dead cat bounce, then they both crash again.”

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