We’ve got a bit of a double whammy going on today in that it’s the last session before the long weekend plus Yellen is scheduled to speak late in the day. So it’s probably fair to say that few of us are going to be doing much on the trading front and I wouldn’t be surprised if most of you are already on the way out. Best to call it a week – quite frankly I could use a few days off myself as I have been working hard behind the scenes over the past few few weeks. However it’s become a long standing tradition here at the evil lair to send you guys off with a few charts of interest and I would hate to disappoint.
We’ve got movement people! As I’m typing this the spoos are attempting to pull a fast one on anyone positioned short before the open and we may see an attempt to push into the ‘end zone’ (e.g. anything above 2080). For now the ES 2060 mark is a key inflection point which, if broken, will most likely lead higher and break the current long term resistance I presented yesterday.
Equities have managed to run circles around even the most sagacious traders over the past few months. We’ve been able to grab a few favorable entries, but constant whipsaw fueled by contradictory musings from central banks on both sides of the Atlantic has effectively turned directional trading on its head whilst offering ever more fertile conditions for swing traders and nimble scalping aficionados.
For the second time this week we find ourselves at an inflection point on the equities side. Is this the moment when the bears are finally ready to strike? I know what you’re thinking: Lucy has been pulling the ball at the last moment – how many times now? More than we care to recall I’m sure. No matter what happens equities always seem to be able to pull a stick save at the very last moment. Why would this time be different?