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Jim Wyckoff

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S&P emini bulls dodge a technical bullet

January 7, 2020 by Jim Wyckoff

The S&P emini futures have seen a “key reversal” down on the daily bar chart that occurred last Friday negated with this week’s upside price action. It appears risk aversion in the global marketplace has at least temporarily subsided following last week’s geopolitical shockwave that occurred when a U.S. drone strike killed a leading Iranian general in Baghdad, Iraq. U.S. stock indexes rebounded Monday to close firmer. Gold and oil prices have backed down from their spike highs scored on Monday. It could be that many traders and investors figure Iran will not execute a major retaliation against the U.S. and its vaunted military, knowing such a move would invite a likely massive and devastating counter-attack from the U.S.—as was threatened by President Trump in a weekend tweet. Other veteran market watchers reckon Iran will retaliate against the U.S. but not right away. However, virtually all market participants agree the U.S. drone strike further stokes and already volatile Middle East. Stay tuned!–Jim

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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