weekend thread., page-11

Ahoy there weekend chartsters. US jobs numbers a bit of a non event. NFP beat expectations, but still negative numbers. The fact that it beat expectations was enough for the bulls to maintain control of the market. So, onto the SPX daily;



It broke 1100 last night based on job numbers, and it should continue to around the 1120 level. I agree with Selmax' call of chop into next week. Where it goes from there is anyones guess, as we are still in a trading range.
XJO may also be affected by political decisions this week, but will only be of minor and temporary consequence.

Onto my SPX futures forward spread chart...



This one shows the price difference for forward futures contracts vs front month contracts, using quarterly contracts. The dark blue is the closest (second forward minus front month) and the light blue is the furtherest into the future (6th forward contract minus front month).
The story this one is telling me is that currently the futures contracts are expecting prices to fall. The futures forward spreads are tracking new bearish lows for the data I have back to 1984. This sounds awfully bearish, but is just one indicator, and should not be read in isolation of what the market is telling us.

Next chart, much respect to Voltaire for sharing his SPI premium ideas on HC.



Has been trading at discounts for a while now, which agrees with our current rally. The discounts look like they are shrinking.
So, with all this in mind, for the coming week I will be looking for the indices to rise for another day or 2, then enter a tight range. From there, I will be looking for some SPI premiums to confirm another downward push.

Safe trading to all.