I thumbed through eighteen key futures markets and thought I’d share half of them with you, since they struck me as important.
Crude oil’s right triangle top is gloriously intact, and God willing, this sucker is going to plunge in the weeks and/or months ahead. This is absolutely begging to go lower.
The S&P 500 futures aren’t exactly playing nice with their Fibonacci levels, but we’ve stalled out in the middle of the highest range, and there’s still a modest portion of overhead supply that will hopefully keep the bulls at bay. The counter-trend rally from April 7th forward has been a brutal one!
Overseas, the CAC-40 from France is vastly cleaner, with a well-defined top that promises to smack down prices with the same gusto as President Macro’s permanently angry wife.
Heating oil, like crude oil, looks ready to tumble.
The Hang Seng Index, shown here over a period of decades, had its day in the sun (green circles), reaching its lifetime peak many years ago (purple) and, since then, lurcher lower as China’s debt-laden economy starts to push reality into the forefront (red circles). I think the Chinese economy is going to suffer right along with the rest of the world, although once we all reach the other side of it, China could well find itself on top of the global economic heap.
The Japanese Nikkei is stubborn, but over the past few years, the topping pattern has been getting hammered out. I’m surprised, given the country’s dreadful demographic and economic situation, that it is managing to sustain itself as well as it has.
As for the NASDAQ futures, here, too, the Fibs don’t seem to count for much except when the market is falling hard, but the crucial element is the broken channel. That represents powerful resistance.
Just about the only index future which is playing nice with the Fibonacci levels is the Russell 2000, whose counter-trend rally gave it a perfect touch to the blue Fib.
Finally, bonds are monstrously important. If we crack below the pink pattern I’ve highlighted, you will see interest rates soaring and, at long last, equities melting.
