"There are signs of buyers hesitation BUT markets ARE still dangerously bullish."
- US markets are flattish red -3 pts on the S&P #ES. Maybe it’s a combination of N. Korea rhetoric, tax delay, or a dip in Oil. Even then it’s too small to fret at this time. We should revisit 2550- eventually but ... Dips are fleeting. Oil inventory reports are due today.
- Saudi Arabia situation: They confiscated billions in assets. There is the thought that some of this wealth is in stock. So what will happen to that? For example TWTR is a high profile ownership of Al Walid and he’s one on the list of detainees...
- Transports are in trouble. Financials also had a bad day. FANG gang... technically posed for a move. (charts below).
- There is resistance from the open interest (OI).
- Levels: 2433<S>2452<2456<2469<2475<2480>2489<2505>2532<10/25 Dip<2553<We are here>2590 (ALMOST there)> 2600+?
- THINGS TO WATCH:
- YELLEN/RATES: October QT (Bal sheet) Dec Fed Rate Hike? They said they won't surprise us.
- TRUMP: TAX REFORM? Thanksgiving milestone? Done by Christmas?
- Central Banks: BOE rate hike/BREXIT? ECB taper (Draghi)
- TRUMP: Geopolitical risk? I assume worst case and make folio be ready.
- TRUMP: Fiscal spending: Feds do not expect it til 2018.
- Dec Debt Limit Deadline
- TRUMP: HEALTHCARE (dead for now) Time line? Headline mode.
- SECTORS: I don't necessarily update the charts every day
- Gold Trading perfectly inside our range.
- OIL Saudi Arabia unrest. Upside risk is warranted.
- Banks Resting as the rate spike eases.
- Transports: #IYT if 175.9 fails = technically breakdown.
- Mega-Tech Tight and move is coming.
- Biotech: BIG correction happened. Technically in trouble. BIG Trump threat.
NOTES:
- S&P e-mini older imp LEVELS
- Recent: 2433ish > 2422ish > 2400 cluster > 2388ish cluster > 2340 ish.
- >2214/19<, 2228, 2250, 2260/68, 2272/2278, 2292/95 (old battle zone), 2313, 2319, 2328+. 2335, 2356, 2363/66S/R, 2371+ to 2379.