The Fed bought everything on its first POMO day after the announcement of the $600 billion stimulus plan. Right now we shouldn’t fight with Fed. So far everyone knows the $600 billion need to be digested through the stock markets. After three or six months, we will see the result this bubble market brings to us. Right now the Fed is giving a stress test to all other nations by devaluing the USD.
For ES, yesterday the price closed 2 points above April’s high. Will the April high hold the price down? Maybe. But there is another possibility: at least one more small pullback down to 1206-03 range for testing today or Monday. After that test a bounce above 1216.75 and a higher close will be a bullish signal. A subsequent higher move should then be expected in the next week.
Currently all markets move in the same direction. As long as they continue to move together, our final target 1222-1245 range remains intact as the destination for the upside movement. If there is any change after CIT day, we will tell our members.
To see more of Nat’s market analysis or to sign up for her free market preview, visit www.naturus.com. Free registration required.
ESZ0 Daily chart
ESZ0 Intraday – 60-minute bars
