ES Continues to Rip Ahead of Yellen's Friday Speech and Possible Confirmation of a June (July) Rate Hike, While Crude Oil Treads Water

Today's strength in ES (Emini S&P 500) ripped above the May 10 high at 2079.75, which invalidates the March-May head-and-shoulders Top formation, and re-labels the advance off of the May 20 low at 2022.00 into today's high at 2092.00 as a new upmove off within the larger, still-unfolding upleg from the Feb low at 1802.50.

Based on my near-term pattern work, ES should rest-digest its 2022 to 2092 (+3.5%) upmove in a range between 2095 and 2070 prior to my expectation of the emergence of another upleg that propels the price structure to take out the April high at 2105.25 in route to a test of the May 2015 high at 2134.

As for Oil, after both the API and EIA headline builds in supply, prices are very subdued, and back below $49, which to me appears to be sign of near-term upside exhaustion. That said, however, to inflict some downside traction, Oil must break and sustain beneath $48.00.