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ES Continues to (Mysteriously) Levitate Near its Highs After Yesterday's Strange Whipsaw Reaction to the Fed


Aside from the behavior of ES (Emini S&P 500) since Carl Icahn's "Danger Ahead" video unveiled on Sept 20, down near 1880, the two other glaring landmarks on the enclosed chart are:

    1) the Oct 15 WSJ article indicating that the Fed had plenty of sluggish data points and a weak international economy to back away from a rate hike during the remainder of 2016, and

    2) yesterday's (Oct 28, 2015) Fed Policy Statement indicating that the Fed now has reasons to possibly hike rates at its mid-Dec meeting!

Whether or not we think the Fed flip-flopped, or is indecisive, or confused, the fact remains that regardless of what the Fed says, or claims, it might do, ES rallies!

That said, it would appear that the common denominator for ES strength is no rate hike yet, accompanied by more QE from the ECB, BOJ, and PBOC.

The relentless uptrend from the Sept 29 low remains intact, and will remain so unless, and until, weakness inflicts some damage, which means a decline that breaks 2060, 2055, and 2051.

Barring such damage, the stair-step climb likely will continue, especially if ES can climb above 2085.25-- in route to 2100, and possibly 2125.

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