Well, the ES is rolling now from the March contract to the June one, and on my charts it already happened yesterday, so there's a 50+ point spread between it and the SPX cash now. This makes it confusing sometimes as I chart the ES but trade the SPX. I'm still looking for a pullback today, but I don't think we will see very much. Probably 30-40 points, but certainly not a move back down to the FP on the SPY of 551.49 as discussed yesterday.
The market is of course waiting on the FOMC tomorrow, so a slight pullback today is normal. We could see some very tricky moves after the 2pm meeting tomorrow, where we might drop at first to shake out the longs and then squeeze back up afterwards to reach the 5800 zone (SPX), which will be 5850+ on the new ES contract.
I expect it to be tricky as after the rally ends, which could carry into Thursday (depends on how much of a squeeze we get) the next move down into next week should hit that FP on the SPY at minimum, if not take out the low. I'm just in a "wait and see" mode right now as I can't take any position at this current spot. I need it higher to short or lower to go long.
Have a blessed day.
The markets went up to their 13 day average and weekly lower Bollinger band yesterday. They probably should have dropped harder today but we’ll have to see how they open tomorrow. It is an infamous 19 day.
SP 500 also hit its “trendpoint” indicator yesterday which highly suggests a continuation of the downtrend. $trin is low once again and all the video gurus appear to be calling for the big rally.