Sometimes, like in an unfamiliar Mall, we need one of those information maps with a big arrow saying “You Are Here” in order to calculate how to get to our next location. Here are today’s “You Are Here” posts.
Dow, SP500, Nasdaq, Rut Futures:
The Dow has pulled-back the least sitting above the 4% line, ES (SP-500) futures climbed back above the 4% line having violated it for an extended period of time. The NQs have returned to the 4% line after a brief visit to 5% and the TFs (Russell-2000) futures have pulled all the way back to the 6% line and have only made it about 1/2 back to the 5% line.
Clearly amongst the sisters the TFs are the weakest. All off them have had a more severe pullback than our last in term of percentages.
Where we are as of this morning at 7:00 am:
You can see that the YM is returning to that 9330 area to attempt a climb out of this pullback, the ES has it battles at around 1000. The NQ is the strongest but has now attempted 3x to climb up and over the 1601 level so this has turned into serious resistance which if over hopefully becomes good support. The TFs continue to show weakness and need to move to the 560 area just to catch up chart-wise to her other sisters.
The rally from the last pullbacks to the tops were about 6% rallies for YM, ES and NQ and 8% for the TF. If you think we will rally back up to the top ride the TF wave (IWM, UWM 2x, TNA 3x) for best returns.
Trouble in River City.
Last night I posted an update on the Zweig charts on the members website. That pointed out some troubles as we are in uncharted territories. Yesterday’s RED bar was problematic for me. I now will suspect the next up bars expecting another pullback or two like our June 15th correction (3 legs down) or May 5th (2 legs down). I still think as posted a couple of days ago we will rally back to the highs or at least close to the highs based on the pent-up sentiment, but there may be some more down legs to make first.
happy trading
-RLT
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