Well, I knew there’d be no red for the bears on Monday morning for one simple reason: crypto was having none of it. Ethereum in particular wasn’t about to budge below its support line. Not even a little:
And, at the same time, the whole “risk on” environment seems to be going hand-in-hand with people walking about from the boring old world of bonds, as /ZB continues to slide (and, thus, interest rates continue to soar – – which, which sky-high energy, is sure to make for a crackerjack economy).
Indeed, besides bonds, the only red on the screen right now is crude oil for a change.
As for equities, we’re still in this grinding range between 4244 for top and 4071 on the bottom. The /ES hasn’t pushed as high as 4244, actually. It only got a little above 4200. I merely mention 4244 since that’s the Fibonacci level, and should we pass 4202, then 4244 would be the next logical level to watch.
The bottom line is that the bulls have been winning ever since May 20th, and volatility has been dying like a fish on a sidewalk.
For my own portfolio, I’ll have to remain in a purely defensive mode, abandoning any charts that seem to be overly strong and otherwise laying relatively low until it’s clear that the bulls will stop beating us over the head with a mallet. Keep in mind the monster event isn’t until next Wednesday, which is (yet another) big FOMC meeting and announcement.
