Hedge funds cronies have been appearing on CNBC, trying to convince the average investor that all is fine, the bull is back. These guys know they face massive redemptions at the end of the quarter and they need a rally to hold. They try and prop up futures during low volume lunch trading, or in the wee hours of the night. If you are short, beware of their tactics until we are done with this quarter. This is desperation alley for some of these morons that kept on putting on low volatility carry trades like the party was never going to end. They are about to get their heads handed on a platter by the real big guns who are getting very uncomfortable with their state pension plans stuck in this no man's land. Bonds get a bid everytime yields move up a little as they quietly rotate out of stocks without causing too many ripples.
I have no idea where we go from here, but it's obvious that we are not getting the same magnitude of selling we had a few weeks ago. It will come back, I'm sure, but for now, keep shorting down days, buying up days and cashing in as fast as you can because low volume trading can be quite treacherous.
ES needs to hold 1967.50, or it could easily drop to 1959/1961. NQ looks stronger after hours, so if you really want to be long, stick with techs. Just be mindful of that gap at 1910 that will ge filled one of these days. QQQQ 48 is gone, next support is 47.66 and 47.41. The
calendar is loaded tomorrow. Consumer confidence and 10:00 and FOMC minutes at 2:00. Watch out for those Tuesday reversals.