Wednesday, 18 May 2016

12pm update - moderate chop

US equities remain moderately choppy, leaning higher into the afternoon. The FOMC minutes (2pm), will offer an excuse for cooling into the close, as some are (wrongly) seeing a threat of a rate hike in June.. which of course will not happen due to the subsequent BREXIT vote a mere 8 days later.




Not much to add.

Equities really shouldn't go much higher... and in the scheme of things.. price action is still pretty subdued. Things only get dynamic on a break <2039... or above the big 2100 threshold.

All bears need to do is contain things under short term declining trend.. which at the close of today will be 2063.

notable strength, financials... BAC, daily

.. as the bizarre talk of a rate hike inspires some upside... but is entirely unsustainable.

A break above the recent high of $15.30 (where the 200dma is lurking) seems highly unlikely, and instead.. the psy' level of $10.00 remains a basic target for the summer.

time for tea.