Sep E-mini Recent Rally...A Mirage?

With today’s Sep E-minis (ESU0) set to open about even this morning at around 1088, the contract seems poised to continue it’s 1- week rally and maybe challenge Last Thursday’s 1-month high at 1099.25 in the next few sessions. This seems unlikely as the recent rally is running on fumes and has no technical or fundamental support. The contract will meet firm resistance at 1098; the 75% Fibonacci retracement level of the 1-month down move between 1129.50 and the 1002.75 and at 1099.25 Last Thursday’s 1-month high. The contract has tested the 1098-1100 level three times in the past few weeks and should break through the next time it gets up there. I don’t believe that should be anytime soon, though, as the current economic news supports a downturn in the marketplace. Carefully bearish seems to be the trend as the market has been rallying on smoke and mirrors. Trade tight and watch stops.