ES Morning Update May 17th 2023

Another yawner yesterday as the market chopped in a very tight range until the close where it dropped into it.  And of course you can see this morning that last minute drop has been erased by the move up currently in the futures.  So it’s still nothing to get excited about as without that last quick squeeze to the upside I don’t trust any of the down moves yet.

That could change by the end of this week if we continue to chop and don’t get the last rally… don’t know yet? I believe Powell is speaking this Friday, so the market could be using that as an excuse to “do nothing” as they want to hear what he says.

We need a leak that is viewed positive today so we can see some “front running” happen to produce that last rally up to the FP on the SPY. Then he says nothing positive or negative and the bubble busts and the drop starts afterwards. All just speculation of course as during times like this there’s not much to say.

We are still in a waiting period before the next nice move starts. The ol’… “calm before the storm” period basically. It’s nap time for the bears and once they all fall asleep the market will do a fast drop without them. It’s happened over and over again, so this time isn’t any different. It will take as long as needed but should be this week when we top and rollover. I’m just waiting to get short, that’s all I can do. Have a blessed day.