In just a few days, the /ES has slapped nearly 200 points on itself for the bulls. At this very moment, every single quote on my screen is green, and a one-two punch by AAPL and the jobs report would give the bulls a clean sweep of this entire week.
The bigger-term picture isn’t quite as sanguine for our bullish friends. This counter-trend rally has been a big one, but it’s done with the easy part already.
One item in particular of note is bonds. Now, Treasury Bonds (represented here by the /ZB futures) have been in their own bear market for nearly 4 years now, as incredible as that sounds. Ever since May, bonds have continued their bearish ways, but there have been one, two, three, four, five, six, and now seven attempts to rally and push back.
The prior six attempts were simply brief periods of respite, only to be followed by new lows. Now, as always, the mass media is trumpeting that The Bottom Is Now In, since somehow this particular bounce is magical and special, even though it resembles every other one that has failed, in spite of the same trumpet’s blare.
One last item of note is the small caps which, as with its other equity futures brothers, is bright green. Please note the 50% mark on this, as we are at this moment a mere 5 points away from tagging it.
