The US stock indices rallied strongly along with all “risk” assets Thursday evening through Friday’s close. The US indices remain in Balance from an Auction Market perspective, but the conviction behind the late week ramp suggests strength at least in the short-term and potentially for longer than just a day or two.
As long as 1324 is not broken our working assumption is the path of least resistance in the market is higher. If 1300-1296 is taken out to the downside it is a sell signal in our work.
The other primary trading indices (TF, ENQ, YM) are in the same relative position.
We will be updating and fine tuning strategy in real time in our Live Trade Room and in our Pre-market and nightly reports.
Click on the chart to enlarge.