vrijdag 16 juni 2017

Friday Market Observations

# Today Quat-witching OPEX. We are close to our SPX 2450 target for June. We are still looking for a major High in June, followed by a sharp 5 - 10% (Flash Crash?) correction / decline in the SPX afterwards to July/Aug.
# Gold just gave us a corrective bounce from the 34-day Fibonacci step out early 6/13 and then plunged after the rate hike into Thursday morning before we got a corrective bounce. We are looking for a 5th wave down from Wednesday's high to about $1234, which could mark an important low. After this, we need a weekly close above $1308 for a true breakout. Another failed test of the $1300 level could lead us to a retest of the May 9 low at $1214.
# We're looking for silver to make a 5th wave lower into Friday before a bounce.
# The XLE rallied in 5-waves on the hourly from lows last week and just consolidated sideways. This is short-term bullish for oil.
# Bonds were resilient yesterday after the Fed rate hike and guidance on the balance sheet reduction,
# The USD gave us an EW 5-waves down from the 6/9 high into Wednesday and then bounced strong into Thursday....