Good morning, everyone, and a happy new week to you. It's cold and wet here in Palo Alto, and as I glance at my various screens this morning, I am struck by how relatively strong the /ES is compared to the Euro and Gold.
After all, isn't this what we've been waiting for? The Euro is plunging, Gold is strong, and the Dollar is pushing higher – – – and yet /ES is down a mere 3 points? What gives? After all, gold has lost nearly eighty dollars in just a couple of days, and the /ES isn't but a few points away from its 52-week high!
This suggests to me that when the Euro and Gold push higher, even if it's just a temporary bout of resiliency, that the /ES will push to new yearly highs. The equity market seems way too robust now in the light of what were supposed to be the "levers" that cause it to fall. Unless the /ES suddenly "catches up" by falling quickly today, I'm afraid that's what's in store.
