Approaching the Open

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It’s going to be a historic day in the market. After the big G20 and North Korea news, we were all waiting for the Sunday open. As expected, equities ripped higher. Although they seemed to be backtracking briefly, they shook off the selling and, as of this post (a couple of hours before the start of regular trading hours), the ES is at record highs.

You can see the ES breakout illustrated here on a daily chart.

The NQ is up even stronger, in percentage terms than the ES, although it hasn’t pushed to record highs yet. That was set last year (green tint).

Crude up is up stronger than either the ES or the NQ, but it isn’t as bullishly poised. You can see that, even with the powerful rise over the past month, we are pressing up against what could be a powerful resistance level.

Just about the only red on anyone’s screen is precious metals. An exceptionally strong dollar has smashed down gold and silver, with gold shedding about fifty dollars per ounce over the past several days.

It’ll be a very interesting day, but I want to emphasize how we close is even more important than how we’ve opened.

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