vrijdag 2 juni 2017

Friday Market Observations

# The DJIA, SPX, and NDX all made new all-time highs yesterday and the DJIA made its first high since 3/1. Market breadth was impressive as we rallied into the 6/1-6/2 turn window. The SPX finished an EW a-b-c correction from the New Moon Timing Window early Wednesday and we are now rallying into the 6/2 NFP jobs report. We are expecting a 8-10% correction in the SPX from June to July.
# The GDX and gold sold off early Thursday but then rebounded. Our gut says that the PM sector is nearing an important low by Friday/Monday. Gold may have seen a major low on 5/9, and our gut argues that we could see a major break out after the 6/2 NFP jobs report. A daily close above $1308 will be very bullish.
# Silver may have finished an EW a-b-c decline into early Thursday, this is bullish.
# Crude oil went lower again yesterday, but the XLE is bullishly coiling. We're looking for a reversal higher on Friday.
# Bonds continued to hold up despite all-time highs in stocks. This is notable from a contrarian point of view.
# The USD is due for a yearly cycle low but can't seem to rally impulsively on the hourly chart. We may have entered a long-term bear market.