Technical Limbo

I think at this point the level of exhaustion among market participants is reaching that of systemic adrenal fatigue. It certainly has been affecting the comment section and I can’t really blame you guys. Although there are setups on the Forex and futures front things have been turning a bit choppy there as well. Equities have been stuck in the same trading range since mid February with no resolution in sight. The odds of this turning into a sideways correction however are increasing by the day. Five years and counting and the bears still are incapable of dropping the spoos by more than 30 or 40 handles. I do not have any directional bias but a thorough correction would be healthy as it would refresh our technical bearings. There’s simply not much up here to hang our hats on.

Being the author of a trading blog these are tough times as there’s simply not much to offer until we see a conclusive breach beyond the current chop zone. As I indicated last week – we are completing a sideways volatile period and those are the worst of times for anyone but avid swing traders. The good news is that once the pain finally ends we should be in for a heck of a lot of fun.

I closed out an hourly long courtesy of a NLBL breach this morning – rest assured that I got my butt out of there before Yellen opened her big mouth. Good for a bit over an R but I usually don’t like to touch equities ahead of anything FOMC related. On the daily side unfortunately there is no entry pattern as of right now. My main concern remains to get us all a seat on the right bus. Let’s hope we see a technical entry in the coming days.

If you enjoy P&F charts then today’s view on the SPX is pretty interesting. We are near all time highs (by a few handles), nevertheless we still have a bearish price objective on the books. This will change as soon as we breach SPX 1880 of course. But it does speak to the sideways chop zone we have been enduring for the past weeks – the P&F chart does a great job of visualizing the pain.

Nothing else on the setup front today. It may be tempting to just throw out a few haphazard charts to my subs but I prefer to be quiet and keep you guys out of bad tape instead. Trust me, you will thank me later – this is precisely the time to keep your powder dry and wait for better market conditions. And as it has so many times before – even this shall pass 😉

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Cheers,