Bad news comes out in down cycle and good news comes out in up cycle - but news always lag cycle! If you know the cycle, you can anticipate the news or rather ignore the media. As noted in the previous post, today was a down cycle day for short term cycles. And they did their expected job in bringing weakness to S&P index. Futures traded as low as 2686 (lower by ~50 points from cycle high peak) before recovering to 2703 into closing. Quantitatively, short term cycle has almost bottomed (creating oversold condition in hourly, four hourly charts) but it is possible to see some more immediate spillover creating divergence in technical indicators before reversal. The way S&P trades in the next short term up cycle move will project the intermediate trend as the medium term daily cycles will soon start turning down. Both US Dollar and Treasury bond prices are incrementally inching higher. Is the risk off trade starting back again? Tomorrow, things are quite on economic data release front.
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| S&P Futures Daily - 02/07/2019 |