The holiday tape has defeated the nice looking retracement setup at the start of the week. There should still be at least some retracement over the next few days, but after a holding like a champ until late yesterday afternoon the decent resistance trendline on RUT finally broke. What there is of the remainder of the week is low volume holiday tape, so it may well be that we won’t see much of interest on the indices before next week, and Monday and Tuesday both lean bullish historically. RUT 60min chart:
ES continues to inch upwards against support at 2193, and until that breaks there’s nothing much to see here on the short side. As and when that breaks there’s a very strong case for a retracement back to 2168-70, but with the negative divergence on the SPX daily RSI 5 lost on the last move up yesterday I’m not currently seeing much to suggest a move lower than that here. ES Dec 60min chart:
I’ll be enjoying the holiday time off and remembering the very strong links that most branches of my family have with the USA. Among many other links the lyrics to the Star Spangled Banner were written by Francis Scott Key while he was briefly a prisoner on my great great great great grandfather’s fleet in the War of 1812, though it was a short confinement, and included dinner with him (Vice Admiral Alexander Cochrane) on his flagship HMS Tonnant. Everyone have a great Thanksgiving. 🙂
