I had my trap set to try and catch another mouES overnight and surprise, surprise - I caught one. Not another mouse like the kind with a long tail and cute little ears. No, this one is the kind that is spelled ES - as in E-mini S&P 500 Futures Index. Actually, as soon as the mouES was captured I sold him to someone else for $1300.0 with a promise to buy the cute critter back at a later date.
Here is a daily chart of the ES futures index.
Click on any chart to ENLARGE
It kinda looks like this mouES is never going to stop running higher and higher. Well, I agree.
But all mouES have to stop for a drink of fresh water and a nap sooner or later ......
Next, a 4 hour chart.
Still looks good for the mouES, wouldn't you say?
I guess if I have a card up my sleeve, besides knowing today is Day 35 of a daily cycle that usually bottoms somewhere between Day 35 - 40, it is this next chart.
This is a 4 hour chart of the SP-500 and it shows the True Strength Index (TSI) indicator's closing whereabouts from last Friday afternoon's session. If the mouES continues to run another couple hours until the NYSE opens we will get an impressive gap opening in the SPX. And no doubt the TSI indicator will take a healthy pop higher, as well.
But how high will it jump? From 0.07 clear past 0.35?
Obviously, I am skeptical. And besides eye-balling the possibilities, I have seen this drill before. The futures get run up over a (long) weekend, the SPX opens with an impressive gap higher, creating a negative divergence SELL signal on the TSI, then price gets (for some reason or another) clobbered.
We shall see.