August 24, 2021

Market Update 8/23 – Possible Equity Index Top Levels

SPY made a volume reversal last week. The red and blue bars on the chart indicate volume reversals at at least 5 year highs/lows. The signal is rare. Proposed resistance levels for ES and NQ futures (see next 2 charts) are about 4500 and 15460.
January 5, 2021

Market Update: 1/4/2021 – The Most Important Update of the Year?

Today’s USDOLLAR low…11635. Price reversed sharply higher after low print. UUP, the USD ETF, made a high volume reversal today. The only other volume reversal on the first day of the year was in 2017, which was a high. This is only the 4th bullish reversal since inception of the ETF. The previous 3 worked. Those charts are below.
September 1, 2020

Market Update – September 1

In financial futures, dealers are considered the ‘smart money’. They tend to be bearish at the top and bullish at the bottom. So, it usually pays to pay attention when their position becomes extreme. Well, the dealer short position in Euro is basically off of the bottom of the screen. In fact, the dealer short position in early 2018 (last big EURUSD high) pales in comparison to the current position. Price wise, pay attention to the levels noted yesterday.
July 8, 2020

Market Update – July 8

Risk’ may have put in an important high today. The following charts ‘explain’ why.
June 22, 2020

Market Update – June 22

ES traded around noted resistance last week before finally turning down on Friday. Focus is towards 2777.25 and 2849. This the 38.2% retrace of the rally from March and 2 equal legs down. Lows from August and October reinforce the levels.
June 16, 2020

Market Update – June 16th

I’m thinking that ES carries into 3110/37 before encountering stronger resistance for another leg lower. The zone is defined by the 61.8% retrace and underside of the line that crosses pivots (high and lows) since 2018 (red line).
June 12, 2020

Market Update – June 12

Finally something else besides ‘melt-up’. Index action in 2020 is basically straight up or straight down. Once the market picks a direction, it goes quickly in that direction without much of a counter reaction. In ES, pay attention to 2976 for a bounce. If it does bounce, then note 3065 for resistance. IF a larger reaction materializes (which would be a change) then 3137 should provide resistance.
June 4, 2020

Market Update – June 4

SPX traded to 3130.94 today. The red line was reached but not the 78.6% retrace. On SPY however today’s high was 313.22, which is the exact 78.6% retrace. Also, a 30 minute volume reversal triggered on SPY (see chart below). This is the 4th such bearish reversal since the March low. The previous 3 were at least near term highs. I’m thinking lower from here.
May 13, 2020

Market Update – May 13

ES broke the noted level at the end of the day. 2885 is now resistance if reached and general focus is towards the 2637/97 zone (yellow box). The bottom of this zone was resistance in March. It’s also the 38.2% retrace of the decline from the February high. The top of the zone is VWAP from the low and the 3/13 high.