S&P

Here is an hourly chart of the December S&P e-mini futures. I last commented on this market here.

After the news of the North Korean nuclear test the market sold off to 1354.25 in trading early this morning. This low was above Friday's low at 1352.50. Moreover, while the news was not exactly a surprise, one would naturally expect the market to continue downward in the face of increased political and miltary uncertainty. So far this has not happened. I regard this as a minor example of the "dog that didn't bark". In other words, the market is not acting as it normally would in response to news.

In this instance the "silent dog" is a bullish indication for the market. So I conclude that we did indeed see a higher low this morning at 1354.25 and that the S&P's are now headed for 1366 or so. Once the latter level is reached I expect the market to take another trip downward to support at 1353.