The NQ is testing May 7 1437.75 high (now at 1427.00).  If it can break, we expect the ES will follow.  Nasdaq Bank index and Russell 2000 have broken up through their consolidation areas, but the Russell has not yet posted a new high.  Watching those three should give a good idea of whether the ES will break up.  If they start to roll over, we don’t think the ES will break.

A mildly bullish Existing Home Sales report at 10:00 am has lead to a retest of the overnight highs, but is now retreating after a failure to break through.  Should we see the 905-906 support area taken out, we will likely head to the 898-899 pivot area.  Volume relative to the last 10 sessions has been slightly above average.  NYSE adv:decl ratio dipped below its trendline support briefly before heading back above.  A breach has been a fairly reliable indicator that the day’s high is in.

Click here.