Into the Future

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As can be seen, the up-channel in the RUT futures continues to define the trading range. Clearly, this was the pull back for which many buyers were waiting. Currently four points above the 20 day simple moving average, if markets make statements, this one was heard.

I venture that the likely scenario next week is a push to and above the 10-day moving average. Consolidation then would seem likely. But if the market truly is bullish, a return to the upper channel would set us up for another multi-day up move. For the small cap futures to reverse course appears to be the least likely scenario.  900 would provide very strong support.

Up/sideways/Down. The only choices always. Markets never reverse time; the past is never forgiven or forgotten; it is graphed.

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A Klee painting named ‘Angelus Novus’ shows an angel looking as though he is about to move away from something he is fixedly contemplating. His eyes are staring, his mouth is open, his wings are spread. This is how one pictures the angel of history. His face is turned toward the past. Where we perceive a chain of events, he sees one single catastrophe which keeps piling wreckage upon wreckage and hurls it in front of his feet. The angel would like to stay, awaken the dead, and make whole what has been smashed. But a storm is blowing from Paradise; it has got caught in his wings with such violence that the angel can no longer close them. This storm irresistibly propels him into the future to which his back is turned, while the pile of debris before him grows skyward. This storm is what we call progress.
Walter Benjamin, 1892-1940

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