Today was all about interest rates and they are going up, no doubt about that.
YM (DOW futures) rebuffed rather forcibly at 61.8% August decline (10633) and looks weak below 10561. Look for a retrace to 10492, weekly S1. DOW cash closed below 200 dma.
ES (SPX futures) is having trouble with the 50 dma (1234), but SPX cash managed a tentative close above. ES still looks strong above 1229, 10 day ema. Weekly pivot is 1228.75, so must hold for ES there. Downside risk is to 1225 (1219 SPX).
Techs and small caps performed better, no surprise as higher rates do not affect them as much, since they usually have more room in their margins.
Oil dropped, but a natural gas bid spoiled that party for equity bulls.
YM short from 10708 stays open.
YM (DOW futures) rebuffed rather forcibly at 61.8% August decline (10633) and looks weak below 10561. Look for a retrace to 10492, weekly S1. DOW cash closed below 200 dma.
ES (SPX futures) is having trouble with the 50 dma (1234), but SPX cash managed a tentative close above. ES still looks strong above 1229, 10 day ema. Weekly pivot is 1228.75, so must hold for ES there. Downside risk is to 1225 (1219 SPX).
Techs and small caps performed better, no surprise as higher rates do not affect them as much, since they usually have more room in their margins.
Oil dropped, but a natural gas bid spoiled that party for equity bulls.
YM short from 10708 stays open.
This entry was posted
on Monday, October 03, 2005 at 8:50 PM.
