Stocks Ignoring Geo-Political Uncertainty and Testing New Highs

With the events in Ukraine, one would think we should see some risk premium building into stock indices.

With the events in Ukraine, Israel retaliating to terror attacks from Gaza and the concerning issue of the ISIS in Iraq and Northern Syria, one would think we should see some risk premium building into stock indices that would push stocks lower, yet after a brief sell off we are seeing a resumption of the strong uptrend.

When looking at Stocks in general, I like to look at the SP500 as I feel this index is the leader amongst stock index futures.

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Looking at a daily chart below we see that the market has a LOT of respect to some timing symmetry.

I measured to move DOWN between April 4th 2014 and April 14th 2014 on SP 500 futures and then projected that with the down move we just witnessed between July 24th and August 8th. The strong support zone between 1885 to 1895 held impressively and the market bounced sharply from these levels as one can see in the first chart below.

E-Mini S&P 500 Equalized Active Daily Continuation
E-Mini S&P 500 Equalized Active Daily Continuation
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