For weeks now, or even months, the morning market seems to come in just two flavors. One of them, the most common, is for everything to be up a little bit, which has accrued into an equity market that makes lifetime highs on a regular basis. The other, far less common, is a good, strong chop lower based on some kind of news that actually justifies some selling.
This morning, we appear to be in Mode One, as typical, with equity futures all up about 1/4 to 1/2 of a percent. Boooooooooo-ring.
Longer-term, I think it’s important to respect that fact that the uptrends have been broken or at least damaged. This bull market is showing signs of wear, in spite of all the Goldman Sachs Says Buy Everything headlines that ZH trots out every thirty-seven minutes. The above and below charts are of the /ES:
The /NQ has put in a hearty recovery since the dramatic bottom last Friday. (Indeed, it’s gotten to the point that I don’t even remember what on Earth all the excitement was about, although the excuse for this most recent rally is that the government is going to get back into motion to get us all deeper into debt, so hurrah for that).
As for the /RTY, its uptrend isn’t just fractured or damaged, like the /ES, but completely wrecked. The key is for prices to remain below that broken pattern.
As an aside, I’d also note that crypto – – whose popularity is an important weathervane for the animal spirits of asset acquisition – – is looking absolutely spent. The daily chart below of Bitcoin doesn’t represent something revving up for another big rally. On the contrary, it strikes me as something holding on to its psychologically imperative six-figure value for dear life.
