Good morning. US equity futures are moderately higher, sp +6pts, we're set to open at 2063. USD continues to claw upward, +0.2% in the DXY 94.00s. Metals are under pressure, Gold -$15, with Silver -0.9%. WTIC oil is +1.9% in the $45s.
Well... considering the price action from last Friday, its not exactly surprising to see the market is set to open somewhat to the upside.
As a fair few recognise, price structure since the 2111 high is arguably one giant bullish wedge/flag. Some equity bulls could justifiably argue we're headed >2111 and onward to 2134.. and the proverbial moon.
However, much the same was said last Nov/December... and that didn't end so well for the bull maniacs.
Best guess: the week begins positive, but resistance (2077 at the Wed' close) will hold, and a third consecutive net weekly decline in the 2020/1990s remains viable.
Any break >2080 after the Wed' open would bode for a strong bullish breakout.
CHK +4.6%... but then.. it was lower by almost -20% last Friday... and the company remains on my disappear list.
GDX -2.5%.. as the metals are on the slide... no doubt with concerns about the recovering USD.
TSLA +1.3% in the $217s, but still broadly weak... the 200/195 zone looks due this month.
Japan: +0.7% @ 16216
China: broadly weak, -2.8% @ 2832, as someone important suggest no further easing.
Germany: currently +1.9% @ 10053. Again, the 10K threshold is important... equity bulls need to hold the gains.. or another reversal this week threatens much lower levels into end month.
Have a good Monday