Sep E-minis Finally Take Bearish Turn

The Sep Emini futures (ESU0) turned lower overnight and continued lower past support at 1065.50 which is a 50% retrace of the current 1-3/4 month up move. ESU0 should continue lower as all technical and fundamental indicators point south. Just be careful as Wall Street will continue to bid up the market with our fund money while their brokers sell to us. The recent up move has been based solely on the historically lower interest rates. With unemployment still at critically high levels, companies still cutting jobs, business closing their doors and hiring freezes in most industries, there is no reason for the stock market to rally.