We are nearing the finale of the Jackson Hole Symposium and anyone who wasn’t invited (i.e. the 99.99999%) is standing by with bated breath to receive the latest economic doctrines conceived by our two venerable high priests of modern finance (Draghi & Yellen). I personally couldn’t care less about what they cooked up for us as the real song and dance always happens behind the scenes. So as long as it doesn’t involve virgins*, goat blood, or a temporary suspension of algebra we ought to be fine. My suggestion would be to sit it out and make better use of your time.
They are going to drag this out all the way and I’m afraid markets won’t really have absorbed the full impact of the two statements until Sunday night. So we advance our stops and stand by for new instructions.
On the spoos (and implicitly on my NQ chart) I am of course looking for support levels as we are invariably going to see some wild swings. Markets are skittish up here and any wrong intonation of a single word can drop equities by double digits. On the hourly ES I see 1980 as a soft support zone – but more realistically 1968 should hold a first stab lower (should it happen).
IF we drop lower than that I’m afraid there would be more momentum than we can anticipate right now and the 100-day at SPX 1920 would be my next pick. On the upside of course I see little holding this thing back – we are so overbought that it’s impossible to find resistance clusters here.
Scott asked me about my DX campaign yesterday – here’s where we are on the long term panels. Clearly we have room to run until 83.5 where I would expect heavy resistance as the upper 100-week and 25-month Bollingers correlate there. Of course we may resolve lower and if we drop hard 81 makes for good support right now.
Obviously I won’t be taking any more setups ahead of today’s big announcements. If anything significant transpires later this afternoon I may chime in quickly. But frankly I’m looking forward to my normal routine starting next week – see a schedule with the most crucial events above. We do have a few marketquakes© on the roster but they happen before the open and thus we may actually get a chance to have some fun in between. I see you then.