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Monday Mid-day Technical Update- S&P nearing important 2810 level

Monday Mid-day Technical Video

https://stme.in/JvZXU6bajM

 

 

Link to last Thursday’s Technical Webinar

https://stme.in/lnSOjY8ZbO

 

 

2-3 day trend

Stocks neutral-  OVER 2810.50 bullish.  UNDER 2789 bearish

Bond yields nearing peak-  2.98-3% should hold- Buy Treasuries with yields in this range Wed-Thur

 

New Technical Long ideas:  TWLO, QTWO, INFO, VICR, SSTI, CSLT, BZUN

 

Just past mid-day we’ve seen S&P gradually turn up a bit more following Europe’s close, which saw most European Bourses down fractionally.

S&P has important resistance into the afternoon at 2809-2810.50 right near last Friday’s highs- Above could allow for a test of 2818 and then move to 2830-45 which would be sellable intoThursday

For now.. we’ll need to see movement up above Friday’s highs to allow for a final push higher.  Conversely.  Under 2789 will continue to have importance.  This area held last night on Futures weakness, with prices bottoming a few ticks above – 2792-3 area.  So overall  2789-93 as support.   And 2810/2818 resistance

Breadth is negative by around a 6/5 margin.. while Volume is equally spread among UP vs DOWN stocks

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Huge move in  10yrTreasuries following what happened to 30yr late last week coinciding with the yield curve steepening

Yields look likely to reach 2.9860-3%, right near mid-June highs in yields.   Counter-trend indicators are 2-3 hours away while daily charts suggest another 2 days before its right to buy TY

Overall this should be a yield spike to buy dips in Treasuries.. but for now. A bit more looks likely in yields

 

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USDJPY-  For those involved in currencies, we’ve seen US Dollar pullback to test the area of the breakout in USDJPY ahead of BOJ

Whether or not they address stimulus.. when purely concentrating on USDJPY charts..  this will be an area to buy USDJPY on this pullback after the base breakout and pullback

 

 

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Bitcoin-  While the move this morning normally is thought of as being constructive.. when prices lift up above a series of former highs and begin to accelerate.. now price is just below a formidable area of resistance near 8k which represents a huge area of longer-term trendline resistance.   This will truly be the “line in the sand” so to speak as to whether BTC can begin a larger rally, or whether this will still take some time.

Note that many of the Alts have not participated in this move of late. It’s largely been BTC itself.  From a trading perspective.. I like selling out of BTC at 7750-8000 today/tomorrow and positioning in BCH- Bitcoin Cash, or Ether which I believe are better relative values..(AND ETH still might still be early) given the move here and resistance directly overhead, while the others .. at least BCH.. appears to be just emerging

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