I sense there are a few more equity bulls in the S&P 500 (CME:SPZ14) that are now in their ‘field’ of equity holdings swinging their sickles in effort to take ripened fruit before it spoils. Since this report below yesterday morning, the intra-session gains seen to that point were relinquished.
This morning, similar gains have also been relinquished. A settlement here would help to confirm the bearish implications of yesterday’s ‘shooting star, and would in fact create an additional shooting star. The slight differentials from open and close talked about below continue and we think demonstrate a high level of indecision.
Finally, although we are longer-term bullish on equity prospects, we think the near-term offers VERY HIGH RISK will see a rather sharp retrace of the 6+% gains since earlier this month.