Good morning. Futures are sharply higher, sp +22pts, we're set to open at 1954. USD continues to climb, +0.4% in the DXY 96.40s. Metals are cooling, Gold -$8, whilst Oil is a touch higher in the $45s.
So.. what is the reason for the overnight ramp? Other than technical reasons, there is ZERO reason why this market should be able to keep pushing higher into next week.
I realise some out there are calling for a straight run to the 200dma in the 2070/60s... but to me, that seems ludicrous... considering the broken weekly/monthly cycles.
We will have climbed from 1908 to the 1950s.. over 2% in just 5 trading hours.
*Equity bears should be fighting to see a weekly close <1958... to maintain at least some degree of net weekly decline.
Yours truly is half short of what I held at the Thursday open. Even so, this is going to be a painful open. I will likely hold across the weekend... I ain't closing out in the 1950/60s... only to see the market fall again next week.
Overnight Asia action...
Japan: a pretty wild session, settling +1.8% @ 17880
China: showing signs of unraveling, settling -1.6% @ 3092. Sub 3k looks probable next week.
Have a good Friday... if you can.
8.50am.. sp +19pts... equating to 1951.
notable weakness, Gold -$9... with the miners ETF of GDX -2.4%
9.35am.. Opening reversal candle in the VIX from 20.81. sp'1946...
As things are... I won't be content unless a daily close <1945.. with VIX 21/22s.