Make no mistake, I can swing from these bars as willingly as the next monkey. As long as the Buck Burns, you’re going to see plenty other primates chase one another right on top of this high wire however. It’s getting crowded up here. If the US Dollar flinches to the upside, everything priced in those dollars will fall down.
Across durations, this market is bullish – but bullish is as bullish does, and for the first time in 12 trading days I can quantify a slowdown in price momentum within a 25-50 basis point range. Remember, tops are processes, not points – all we can do is monitor the math, real-time, in order to give us signals.
This morning, my macro model was spitting out an immediate term resistance level of 1,004. After today’s fits and starts, the rally monkeys can’t get me to go much higher. In the chart below I have outlined 1,005 as my new line if immediate term TRADE resistance (dotted red line).
Immediate term TRADE support bumps up to 985 (dotted green line). When/if we selloff, that’s your new yellow banana.
Keith R. McCullough
Chief Executive Officer