Hard to believe what nonsense goes on with a rally that refuses to see any pull backs.
However, the early trend and bias said to long these two index futures, but after the open, it never returned to a long level that made you feel comfortable due to the nature of the extended move above yesterdays highs.
The s&p after making new highs at 1676.50 earlier did look for the target price mentioned of 1669.60, but failed as a last pit low printed the 1671.00 price / mini low of 1670.75. A move to next resistance of 1679.60 did find a current high of 1680.00 pit / mini high of 1680.25. It followed with a low of 1678.00 mini and another print mini high spot on at 1680.25. I believe the line in the sand is drawn for this future and if it takes out the 1678.00 price before new highs, I say the highs will be in for today. If not, another step up the ladder targets next resistance at 1686.70. A swing south looks for earlier resistance price of 1672.50 and an offer will certainly entertain further erosion.
The Nasdaq after finding a double bottom of 3177.50, which in turn held its # price of 3177.00, made new highs at 3191.00 that followed a low of 3178.25. That my friends is a key swing level if seen later on today. A test of next resistance of 3197.50 met with a high of 3197.00, followed with a higher low of 3193.00, and finally returned back to make new highs currently at 3200.00 pit / 3199.50 mini. I believe a move under the 3193.00 price followed by an offer of 3191.00 locks in this futures high for the day. Remains to be seen as next resistance comes in at 3206.50.
You would just have to think this move is in need of a pull back and since both futures are holding those last resistance prices, I can’t see why those highs aren’t good. However, I need to see results on this next move south, if not, I’m throwing in the towel for today.
I really think the highs are in. There I go thinking again.
I don’t care for the bonds, but at this time they did trade above the 132.09 price and look ready to explore higher ground looking for tests of 132.27 and 133.13.
This move in the bonds could be the tonic for these index futures to head south.