Hey- Careful! that's MY blood you are drilling through right now..... (OH NOOOO! )
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In Tuesday's commentary I talked about the head and shoulder pattern concern, but zooming out shows an even bigger problem. That doesn't mean we won't pull another back and forth like August in the short-term, but keep an eye on this neckline support...
https://www.tsptalk.com/images/mb/100819b.gif
The HYG High Corporate Yield Bond Fund ticked back above the 50-day EMA this morning. The patterns seems to be repeating, but for the stock market to keep moving higher, this needs to keep improving and recapture 86.40.
https://www.tsptalk.com/images/mb/100919a.gif
If feels like it doesn't want to hold today, but the S&P 500 futures were actually up about 40-points late last night (early Wed. morning) so there is some room on the upside to run since the futures showed no resistance to hitting that level - which would be about 2935 (currently 2910). That seems ambitious, but I'm just going by the futures chart.
Here we are again...
https://www.tsptalk.com/images/mb/101019a.gif
What resistance?! Boom!
https://www.tsptalk.com/images/mb/101119a.gif
I am starting to believe that the Stock Market this month is very much like a classic James Bond Vodka Martini-
"Shaken, not stirred".
https://www.youtube.com/watch?v=UUI65HYqQw0
Huge day for small caps, but can it do what the S&P just did ... break above the 50-day EMA?
https://www.tsptalk.com/images/mb/101119b.gif
I'm more concerned about the large gap today on the both the C & S.
It's not surprising that the credit market is applauding the trade and Brexit headlines, but more impressive is the chart still looks good with the pullback finding support in expected areas.
https://www.tsptalk.com/images/mb/101119c.gif
The S-fund is making a move above the 50 and 200-day EMAs again, but last Friday it couldn't hold those breakouts into the close. It could be a game changer if it does hold, but it could also be the top of the right shoulder of an H&S pattern. Too early to say.
https://www.tsptalk.com/images/mb/101519a.gif