As I am beginning this post on Monday evening, the net change in the ES is +0.00, and I suspect things will be ungodly boring until the FOMC’s big event on Wednesday, at which time they do their usual schtick and also discuss details of slowly unwinding their gargantuan $4.5 trillion of assets they acquired for the noble purpose of making the Rich even Richer.
Of course, looking at the Dow 30, it sure doesn’t seem like anyone is worried about equities……..
I last wrote about the World Market Index on August 30.
Since then, price did retest (and break above) the 1950 major resistance level to make a new three-year high, as shown on the Daily chart below. It closed just above that level on Friday.
Notwithstanding this year’s push higher (once it broke above above the prior year’s congestion zone), the RSI, MACD, and PMO technical indicators have failed to make a series of higher swing highs since mid-May…suggesting that market enthusiasm is waning in world markets, in general.
Long E*Trade Financial (ETFC)
The GBP/USD Forex pair has rallied to the underside of major price resistance, as shown on the Monthly chart below.
Watch for a breakout (and hold) above the current level, accompanied by a continued rise in the Momentum and Rate-of-change indicators, to confirm that a further rally is sustainable in the face of ongoing Brexit negotiations.
Just about the only time I see a large number of magazines at once is when I’m going through an airport, such as last night. I often find the strangest part of the magazine section to be the women’s magazines, since they seem a peculiar combination of righteous indignation and breast-display. These two magazines were next to one another, and the juxtaposition of message was particularly striking:
It seems that Allure featured a self-congratulatory “call to the industry” to stop obsessing over youth. Don’t hold your breath, people. Nothing’s going to change.
After a memorably boring four day range consolidation Tuesday through Friday last week, SPX finally broke up and tagged 2500 at the close on Friday. This should follow through to the upside, short term at least, and I have some targets to watch, and a warning that this move over 2500 may well not last the week.
On SPX the obvious trendline target is rising wedge resistance, currently in the 2514 area, and a strong match with rising wedge resistance on the ES chart. On the daily chart (not shown below), there is a possible RSI 5 / NYMO sell signal brewing, but the negative divergence is slight and might well be lost on a green close today or tomorrow. SPX 60min chart: