DrStool Posted May 7 Report Share Posted May 7 5 hour bars on the ES 24 hour S&P futures show the market to be extended here to the level where previous minor tops have formed. The market has also reached a major resistance area. So where to from here? Straight down today? Lately the 3 and 5 day cycle periods have merged into a 4 day cycle expression. This is a common feature of this market. If the pattern holds up here, then a low would be due today and the market won't correct much. At 7 AM NY time trend support is rising at roughly 5165, headed toward 5185 at the NY close. If that line holds, the next move should be to a new high. That would show that the market is in trending mode. And that's a situation where it is until it isn't. On the other hand, if that trendline breaks, then there's a case for a pullback to 5150-55 before the next rally. In the third week of April, when almost everyone was all beared up, I was bullish because both liquidity analysis and cycle analysis showed that a bottom was forming. Want to know what to do now? Stay ahead of the curve. Know what to expect and trade with confidence. For moron the markets, see: Swing Trade Screen Picks – Surprise Shorts May 6, 2024 Don’t Trust, Verify May 6, 2024 April Tax Collections Soared May 4, 2024 Gold Valley Rally May 3, 2024 The Fed Doesn’t Matter Any More May 1, 2024 Swing Trade Screen Picks – Hidden Gems April 29, 2024 If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam folder. Link to comment Share on other sites More sharing options...
potatohead Posted May 7 Report Share Posted May 7 Could the better tax filing data be due to loan forgiveness? Normally loan forgiveness is treated as income for tax purposes. Link to comment Share on other sites More sharing options...
DrStool Posted May 7 Author Report Share Posted May 7 No idea. Ours is not to reason why, Ours is but to forecast the flows and float with them. Higher tax receipts will prolong the seasonal paydowns. The timing of the market reaction to the annual paydown festival varies by a few days from year to year, but once triggered, we know what to expect. Quote Tax revenues in March and April create a cash bulge for the US Treasury. It normally uses that cash to pay down a couple hundred billion in T-bills in April and May. They plan to do so again this season. The money from paying off those T-bills will flow into investor accounts. Some of that money will be used to buy stocks and bonds. That should cause xxxxxx xxxxxx xxxxxxxx into mid to late May. The End Is Not Nigh March 26, 2024 1 Link to comment Share on other sites More sharing options...
DrStool Posted May 7 Author Report Share Posted May 7 Testing. Testing. Link to comment Share on other sites More sharing options...
DrStool Posted May 7 Author Report Share Posted May 7 Utilities are the new bitcoin. Link to comment Share on other sites More sharing options...
SiP Posted May 7 Report Share Posted May 7 You mean because XLU is rising? Whats the phase of the market if utilities are moving up? Link to comment Share on other sites More sharing options...
SiP Posted May 7 Report Share Posted May 7 That would be recession. Link to comment Share on other sites More sharing options...
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