Are we approaching some near term resistance with the two bigger indices? Ironically, the cash market has been lagging the futures markets which are showing strength and the potential of continuation to the upside. While not wanting to deliver some fuel to the bearish minded, we use charts to show why the fib resistance levels could spell some peril to those who are overly bullish. Among bigger catalysts for the markets, we have the changing of guard at the central government with what most in wall street see as an extremely business friendly leadership stepping in to take the reigns. While markets always welcome less regulation, more deals and potential for growth organizations to excel, the sentiment among participants is cautionary heading into what could be a tumultuous earnings period with rising yields and slower revenue growth. While a significant number of the big banks among other financials like Blackrock have already reported, we have Netflix reporting next Tuesday which generally kicks-off the tech earnings names.

The chart pattern below the Emini S&P futures continuous contract is showing a lower high pattern over the 6-week time horizon. While this isn't much to make a decision off as price extreme measurements are customarily for support and resistance determination and not for actionable trade ideas. The current move this past Friday had the futures moving a bit disjointed off the cash market. How things will unfold, the coming week will tell us a compelling story. Thus far the financial earnings have been robust so there is no specific reason to believe the performing stars of the market will fail to perform for calendar Q4 results.

Chart (ESH25)