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Rampaging Bulls, can the bears stop them? YES


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#21 MDurkin

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Posted 08 November 2018 - 03:37 PM

 

 

 

Need some more big-range bars, market is too range-bound & choppy, hopefully after lunch we will get a breakout - up or down.

 

Better to look for a pause to refresh due to the deeply "overbought" readings...a moment to look around and see if there are any further takers or not.

 

Supply and demand...this is the backbone of all things market.

 

What're your thoughts on interest rates Dave? 30 year going to...

 

On strictly technical basis, cumulative money flow has been moving out of notes and bonds, in earnest, since the 1st week of September.

 

Chart wise, the yield on the 10 year note broke above historic resistance at 3.11%, and we have seen the obligatory snapback to or toward this same level during the "crash like" sequence of October.

 

So, I guess, I'll answer your question with this partial observation from the Weekly Breadth Data review of September 14th:

 

"With the yield of the 10 year note now challenging important resistance at the 3.00% level, this breakdown in the longer term pattern of this A/D line now suggests that this same area of yield resistance will be taken out sooner than later leaving only the May highs at 3.11% as the last remaining level of protest before a major move higher toward the highs seen back in 2011 at 3.80% takes place."

 

With all things being equal, that would mean a yield of around 4.60% in the 30 year bond.

 

Fib

 

Thank you.



#22 dTraderB

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Posted 08 November 2018 - 05:42 PM

SPX rallied from below 2800 to close a few points lower. 

Bullish close after threatening to sink below the important 2790 level

 

Unless some unknown event occurs or there is an unexpected factor affecting the markets, the rally is still intact and promises more upside. 

 

However, SPX has to close above today's high ASAP or else that swing high will be the top for this sparkling rally!


Edited by dTraderB, 08 November 2018 - 05:43 PM.