For US equity markets, and the YM emini in particular, it is the daily chart which has focused the mind over the last few weeks, and the prospect of whether or not the sustained resistance level that has developed in the 17,850 region would be breached, or whether this would ultimately cap the Santa Claus rally and bring it to a shuddering halt.
With the Nikkei having fallen over 2% at the start of a new trading week and month, European and London traders could be forgiven for thinking their respective markets and Globex would simply follow suit.
The traditional and seasonal Santa Claus rally appears to have come rather early this year, with October’s rally for the NQ Emini (QQQ, quote) recording a sensational month of gains following the equally dramatic events towards the end of August which saw the index correct sharply, before strong stopping volume duly appeared to prevent the market falling further.
Just like the children’s board game of snakes and ladders, or as it is known in the US as chutes and ladders, coming down the snakes is always much faster than climbing back up the ladders, and so it is proving for primary equity markets in the US.
