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Today’s market was on hold as the market traded between 117-24- and 118-08+. The Pending Home Sales news was supportive, but took the entire day to work its way into the market. The ES held its range until the Bonds closed and the bottom fell out of the market. The fundamentals are supportive for the Bond and not for the ES longer term. And the Bond may have started a new move out of the middle in the L period today. No news to drive tomorrow’s trading. The focus should be the ES. I expect the ES to be sold OVN, which should support the Bond. Tomorrow’s ES session should see a weak opening, followed by some retracement.
F1 Comments: Market has been in an uptrend in a bracket. It may have broken out late in today’s session. Follow through buying tomorrow will take us into an uptrend, if 119-12 is taken out. Bias is for higher prices.
F2 Comments: A sideways day until late in the session when the ES plummeted and the Bond rallied accordingly. The early news was supportive for the Bond, but that didn’t stop the market from selling down to 117-21, a blue area, where buyers once again emerged to support the market. The rest of rthe day was a slow grind higher w/a strong close. Had hoped to be able to buy the Bond at 118-01/05. Will have to pay up now. Aggressive buy is 118-17/21. A conservative buy is 118-13 OB. Danger tomorrow will be a gap up opening that finds sellers off the opening. And normal dynamics for down markets are higher openings to knock the weak shorts out of their positions. A higher opening in the ES could set up a better buy in the Bond.
F4 Comments: Analysis was two sided. Market traded in a bracket most of the day w/multiple buy and sell signals throughout the session
