It's BachNut time again...
The NYMO cycle is UP.
The shake and bake continues.
Last week, we had a bearish price divergence with NYMO getting positive but price failing to make higher highs.
With Friday's whack job, we may see a bullish NYMO divergence in the days ahead if price breaks the early August low.
It is also plausible that the up cycle is done, and NYMO is starting a fresh down cycle. I don't think so, but time will tell.
Pricewise, the middle keltner has been providing durable resistance for the last few weeks.
The 200 day MA is within 20 handles of the August 5th low and looms as support.
I imagine the shake and bake will end soon (after Labor Day?).
Given what NYMO is doing, I am inclined to be prepared for a third (and final?) push up from the December low to test the ATH.
That said, this shake and bake could be a consolidation/bear flag that will break down in due course.
I haven't a clue, but the action around the 200 day MA could clarify.
I am flat. I did try a small long SPX last week. Got off a scale and then bailed on Friday net down a few peanuts.
Until the shake and bake ends, nimble is the word.
No set-up pending at the moment.