The collision of global markets and social mood

Tuesday, June 7, 2016

Tuesday -- When Every Outcome Is Bullish

S&P E-mini Futures:
Overnight turnaround higher from yesterday's weak close, but coming off best levels.

Sea Of Green™ 'round the world as markets rejoice on Yellen's latest comments. Speaking about rising rates, the definitively ominous "in the coming months" was replaced with a vague "probably" that left the door wide open to pushing off hiking rates indefinitely.

Here's the sentiment snapshot, noted via

When every outcome is bullish, there is no more market.

AUD and GBP are the standouts today, both stronger, yet curiously USD is holding rather firm.

Prices hanging at highs.

WTI crude new rally high above 50. NG continues to look bullish.

Copper getting pummeled as metals take a hit across the board.

S&P Outlook:
The S&P cash got above the April 2111.05 swing point yet closed below it on lighter volume, which is not usually a good indication.

In this case, it didn't matter. Asia went green and Europe followed. S&P E-mini futures followed too.

But with futures now coming off their best levels, however, it's not certain we're clear for takeoff. I'd almost prefer a new all-time high at this point, with internals looking the way they do.

That said, here is an updated near-term bearish view with a corrected scenario. Note that price could still rise in an X wave, but could not exceed the all-time high at 2134.72.

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