Yesterday morning ES tested the weekly pivot at 2035.5, and then SPX tested the 50 hour MA and then SPX was off to the races again. That 50 hour MA has held on five tests out of the last six trading days and until we see a break below it this uptrend is still very much intact. That first break below would normally also precede the main high, so that main high still doesn’t look close here. SPX 60min chart:
Well, the three remaining equity bears on Earth got their last hopes blow-torched overnight, as central banks continue to do what they do best – – – ease. China dropped interest rates (because God knows what’s holding the world economy back are the sky-high interest rates we’re all burdened with), and Europe decide to go Full Kuroda on their own “easing” (sending EUR/USD into a free-fall). Suffice it to say almost everything but the Euro – – crude oil, gold, equities – – is flying higher. Here’s the ES (including, for big laffz, the brief bout of weakness it had during the times of Ebola):
In case you want to get a sense of the insanity that has struck the area, look no further than the billboard below which is prominently (and expensively) displayed in various venues of Bay Area highways………(fun fact: the very first web designer I hired for the Prophet web site, back in the late 1990s, was none other than Jason Fried, who went on to create Ruby on Rails!)
A couple of drug retailers looked attractive on the short side to me today – – Rite Aid and CVS, each shown here…..for those loony enough to still give shorting a try.