Good morning, everyone. Well, the big week is here. If all goes as planned, we’re going to make the leap Friday night from the old Slope to the new. I’m plan to have my fire-retardant underwear on for as long as possible, because when it comes to software deployments, you never know how badly (or well…….) things might go.
For the moment, just a quick glance at two key charts. Looking at the /ES over the past couple of weeks, we had our all-too-brief drop last week, followed by an irksome recovery. The series of lower highs is still in place, but it’s quite plain to see the slope is becoming much milder. This is a huge week in earnings, of course, with AAPL the spotlight Tuesday afternoon, so that will be the real driver.
What remains a far bigger focus for me is bonds, which seems to have bottomed last Wednesday for the time being. The basing pattern below looks pretty scary, because it is very well-formed and implies a list of almost two more points. The long-term picture is unchanged, so I plan to tough it out.