BofA Merrill Lynch notes ....
- While we remain bullish ESM5, targeting 2109/2136 resistance, and have no interest in fighting the tape, we are concerned about near term seasonality and the VXV/VIX ratio.
- However, to be clear, we are still bullish. At this stage seasonality and the VXV/VIX ratio are only concerns.
- Indeed, trouble doesn't start until we see a break of 2074.00, while a break of 2052.25 is needed to invalidate the small head-and-shoulders base that is currently driving the market higher. Bears don't gain control until we break 2029.