Ambiguity? Deal With It!

Hourly ES S&P 500 Futures Chart

Setups don’t get much more ambiguous, and fraught with 2 way potential, than this. OK, it’s more upside than downside potential today. An upside breakout through 3390 would target 3415.

A break of 3372, on the other hand, would only have room to about 3363 before reaching trend support. If that broke, now you’d be talking. Room to run down to 3330 or so.

These short term oscillators are giving no hint whatsoever yet which way the break will be. Bulls get the benefit of the doubt until proven otherwise. Something I heard about, “The trend is your friend.” True until it isn’t. Right now it still is.

ES Futures Hourly Chart


China Stock Market Overnight

Over in China, they went right back to work on the upside after a single down day in 9 days. It’s pretty impressive how the “People’s” Bank of China rigs that market. They’re almost as good as the Federal Reserve.

More open about it for sure. At least China’s central bank ain’t shuckin’ and jivin’ all the time like the Fed does. God it’s embarrassing watching these Fed mouthpieces come on the CNBC and lie like a rug all the time. Who are they kidding?

So the Shag High continues to challenge the line formerly known as uptrend. The Fed may be king, but the PBoC is still the Prince of Prints.

China Stock Market Chart


This classic Return to the Scene of the Crime (support break) pattern, happens a lot.

This is also an ambiguous setup. A rollover here should lead to a dramatic drop toward a retest of the low. Conversely, a holding action near the trendline should lead to a renewal of the rally, heading for 3100.

S&P Futures Daily Chart

Back in New York, we’re in the fourth day of being rangebound on the daily chart of the US futures.  They’re at or slightly above the upper bound of the range as I write at 7:50 AM ET.

Either a pullback or consolidation is due. The range is the Magic 8 Ball. It knows all and tells all, but only when it breaks. The parameters to watch are 3389 topsides. The first target above that would be 3412 on the ES.

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