Big Drop, Big Pop, Now What?

2021-03-12 / Joseph Rangel

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After a wild week of drop and pop, we are finishing with /ES and /YM at all time high levels, while /NQ is continuing to lag. Bonds are still very vulnerable, with /ZN finishing the week with a slightly newer low from the prior week. It is still very clear that big money has no interesting in picking up technology. A big thing to focus on next week is whether or not they do any rotation into technology. With /YM releasing a Daily squeeze the past few days, it makes sense to lead this market, but as it nears exhaustion levels, I’m waiting to see if they pick technology back up, or if we start a selling frenzy again. At these levels for /ES last time, we chopped around for awhile and just lingered near the highs. QuadWitching is next week, so this could be a recipe for sideways action, but anything is possible. Also, FOMC and Chairman Powell speaking on Wednesday.

Joseph Rangel

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