maandag 3 april 2017

Monday Market Observations

# Led by energy stocks and financials, the SPX finished an EW 5-wave advance into late Thursday and the NDX made a new all-time high. We got a corrective pullback on Friday. We are looking for a test of the SPX and DJIA highs going into 4/15 (Tax Day) as IRA contributions continue to boost the market higher in the short term.
# Crude oil continued to sub-divide higher into Friday. The aggressive sub-divisions higher on the hourly chart argue for a substantial bounce.
# Gold peaked on the 3/26 New Moon and continues to trace out a 3-wave correction on the hourly chart. The ideal setup would be for the metals to pullback while the gold stocks show relative strength into 4/4, the 55-day Fibonacci step out from the 2/8 high.
# The Dollar Index finished an EW 5-wave rally from early 3/27 into 3/30 and is tracing out an EW a-b-c correction on the hourly chart....