ES Update

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As expected, ES continues to consolidate in a narrowing range as we watch to see if the pros will kick in a new higher ST stop under 1984.25 in the coming days.  That is the line in play and we need a couple more days before we will know if that will be the next higher ST low.  For now, the narrowing range is highlighted on the chart above by a triangle formed off the current VST trendlines.  Until we get a breakout of that contracting triangle range the market is just drifting and consolidating.

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This is one of those times where price is meandering back and forth across the ST primary trend line at 2041.50, which happens to be near the middle of the current ST range between 1961.50 and 2088.75.  If you are ST bullish, the better place to set a protective stop is under the bottom of the VST range (1984.25) to stay out of the whipsaw zone.

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So, while we are waiting for the triangle breakout, let’s take a look at a couple of other symbols…

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Gold has a potential stop sweep/reversal setup in play after taking out the last monthly pivot at 1178.90 and then reversing.  There is also a confirmed bottom spotter–so gold could be coming back to life here.  A move above the dashed grey trendline resistance (currently in the 1280 area) could bring in new buyers.

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The US Dollar has also been on a tear the past 7 months but is close to resistance here at 92.63 and so possibly a bit extended, which is in agreement with what the Stops and Targets trend analysis is saying.  The dollar has changed character recently from previous sideways consolidation (pinning by the pros) so it is worth watching to see what comes next.

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Last up is crude oil, which is in an induced freefall courtesy of the House of Saud.  Some have speculated that the Saudis were getting spooked at the North American shale oil competition and so this is an attempt to crush that opposition–and possibly even an attempt to force key players into insolvency, which is a old ploy in business to eliminate competition and then sometimes to create a future bargain as those troubled assets come on the market at distress sale prices.  In the short term we all get cheap gas, which is great, but longer term this is a brazen attack on America’s future energy independence–and so watch our politicians carefully going forward to see their true colors and to whom they bow their real allegiance.

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…and while I am at it, how about a short rant on the subject  🙂

Let’s start with an extremely astute observation by Joseph Campbell, which has held true through the test of time and history:

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“If you want to understand what’s most important to a society, don’t examine its art or literature, simply look at its biggest buildings.”
― Joseph Campbell

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So. let’s do just that by following this link…

http://skyscraperpage.com/diagrams/?searchID=201

By 2020 only two of the tallest 25 buildings in the world will be located in America and our tallest comes in at only 12th.  Take note who has the tallest buildings and let that sink in a bit.

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I leave you with the following images to further contemplate…

obamabows

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saudiOli

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‘keep your friends close and your enemies closer’

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…my .02