The whole idea of trending lower today was thrown out the window early on when these indexes futures moved above their settle prices. It warned that scenario would peg the initial idea wrong, but as I write I’m surprised on how the move higher at this time is showing so much strength.
When the s&p did trade over its settle price, it did find a high of 1714.60. Holding its # price of 1714.90 did lead a move to a last low of 1713.00, holding its settle price of 1713.20, which confirmed that the bias was to extend higher. New highs of 1716.30 stalled at the previous days high of 1716.70, but along came a higher low at 1714.70, testing its upside # price that kept this future stepping up the ladder today. It stalled at its weekly fib of 1721.80 when making a high of 1721.70, but could only manage a small pull back to the 1720.50 price. New highs as I write at 1724.70 has this future ready to test contract / December year highs of 1726.50 big / 1726.75, on its way to the all time mini high of 1733.25, which was made by the September contract before expiration. I can’t fight this trend and it surely has seen the bulls take a strangle hold. However, don’t get caught off guard by some late profit taking. Up and away.
The Nasdaq did follow the s&p this morning, but did give one last chance to get long when after making a high of 3269.75 it did come back to test its opening tic of 3260.50 making a low of 3259.75. When it immediately went back above its settle price of 3264.00 it really never looked back, stepping up the ladder itself. Finding a high of 3274.25 led to a low of 3269.25, which in turn held that initial move to 3269.75, turning early resistance into support. It’s next move sneezed at its weekly fib of 3278.25 and found next resistance at 3285.25, topping out at the 3285.50 price. A low of 3282.75 never really gave any value to the short level as it worked to test next resistance at 3290.00, current high of 3290.75. Nary a pull back once again as it looks for next tests of 3304.00 and target now of 3323.00.
The bonds continued its climb higher. The regular session did print the 133.25 price, which never did see a move under the 133.24 price until new highs at 134.00. Closing in on the key level of 134.04, this future pulled back to a low of 133.27, found new highs once again at 134.02, falling short of 134.04, down to retest the last low of 133.27, print low of 133.26, which in turn did hold the resistance of 133.24 as support. Drifting in this area now and I’m thinking two things. Either the 134.04 stops this future in its tracks and follows with a move back under the 133.24 price, offering some profit taking, or stops are found triggering a move for tests of 134.12 and 134.21.