S&P E-Mini Short Term Update

The spoos spent much of today correcting in a fairly orderly manner – crap & camp – pretty much textbook. Now, the big question that’s probably in your tortured minds is whether or not the perma-bears were right for a change or if this is just the short term shake out I proposed last weekend.

After falling away from a whole cluster of green we’ve got a brand new NLBL at 1267.5 right now – alas, a first attempt to breach failed. With two more hours left in the session we do have a sufficient time left for the real players to show their cards. If we fall back down I would be mindful of the 1257 mark – a violation of the 100-hour SMA would be a first sign of real trouble ahead.

The daily NLBL breached last week was at 1252 and I’d like to see it remain intact or we may be looking at a more meaningful correction. A breach below that would invalidate the previous buy signal and is probably good for a drop into 1235. Again, I have no directional bias and thus I look for behavior at important inflection points to gauge the short to medium outlook.

On the weekly/monthly front we seem to be in good shape as we will most likely close above the respective resistance clusters I outlined last week (in that context also see my weekend post in case you missed it).

UPDATE at the bell: We closed the month above the previous NL sell level but we dropped through the previous daily NL buy level. So unless there is an almost immediate counter push tomorrow we are most likely at 1226 or even 1200 here on the ES E-Mini.

Cheers,