The Yawn Has Been Strong In This One

I didn't manage to get a post out yesterday which is always a risk as Wednesday is my busiest day. The tape was dreary and neither bulls nor bears could manage to sustain a move for long but that's often what happens when a retracement flag is forming, and that is still likely what we are looking at here.

On SPX bull flag resistance is in the 2391.5 area and interestingly the equivalent flag resistance on ES has already broken up. The falling wedge on the hourly RSI 14 has broken up with a target at 70 on the hourly RSI 14, and SPX is still trading around the 50 hour MA at 2388. That needs to be converted to support to open the upside, or resistance to open the downside. SPX 60min chart:

Support on the daily chart is at the daily middle band in the 2365 area. I'm not expecting that to be tested before a retest of the highs but if seen that might well be decent support. SPX daily chart:

The futures charts below were done before the open for Daily Video Service subscribers at theartofchart.net. If you are interested in trying our services a 30 day free trial is available here.

The bull flag on ES broke up overnight but is still waiting for confirmation from a matching break on SPX. Main support is the weekly pivot at 2380.5 and if bears can convert that to resistance, which they failed to manage yesterday, then lower targets open up. ES Jun 60min chart:

NQ has done a closer test of resistance turned support at 5600 this morning and that's still holding so far. That is main short term support on NQ, NQ Jun 60min chart:

Likely bull flag resistance on TF is now in the 1400 area. TF Jun 60min chart:

There's talk that a Healthcare Bill might be submitted again to Congress today or tomorrow and, strangely, that the administration may still not have the votes to pass that. Definite newsbomb potential today while that is playing out.

Stan and I are doing two free public webinars at theartofchart.net this week. The first is an hour after the close tonight and that one is 'Managing Risk - Part 1 Managing Entries and Exits. The other is our monthly public Chart Chat at 4pm EDT on Sunday. If you are interested in attending either or both then the link to register are on our May Free Webinars page.