Mr. B reporting in...
The NYMO cycle is up but sputtering.
Getting above and staying above the zero line has been managed with struggle.
We are a little negative this morning. So, today's close will be interesting.
Price has broken down out of an ascending wedge today.
At the moment, the mid-week break above the wedge looks like an overshoot and a possible bull trap.
Today, we have opened an upside gap at yesterday's close and came close to closing a downside gap at SPX 3197.52.
There is also an open down gap in the ES future at 3184, which I expect to close in due course.
An ideal scenario for bears would be to close this morning's gap, test the underside of the wedge and set up a little head and shoulders pattern that resolves to the downside.
Probably won't happen...
I am long a small R2K position. I did put on a small SPX position some time ago that scaled out some profits before getting breakeven stopped.
What profits I have made in SPX from the March low have come from scales. The high volatility character of the rally has made my breakeven stops easy pickings.
A little frustrating... but I think this is meaningful somehow. This rally has been different in character than prior Fed induced rallies we have seen in recent years.