The /ES continues to grind uncomfortably and annoyingly along its descending trendline of resistance. It could, of course, pop above it at any moment. Given the fact the trendline isn't even a week in length, a break above it wouldn't be explosive, but it would be another carpet tack in the coffin of the bearish argument.
Some might assume, based on my disposition, that I am massively short the market. I'm not. I have about 10% of my buying power deployed in short positions. I've got 3000 shares of SSO to ameliorate the market's strength. I've been spending virtually all my time getting ready for, but not executing, the trades which interest me.
The Russell looks like this right now:
Operating in the favor of the bulls………
- Broad uptrend still very much intact;
- There's about 8% upside from here before the major resistance at that rectangle
- And, just now, AA reported earnings which the market seems to really like.
In the bears' favor……..
- Trendline breached;
- Massive resistance overhead
Looking closer, we can see the series of lower lows and lower highs, but one good strong day higher could break this: