dinsdag 6 juni 2017

Tuesday Market Observations

# The markets began a consolidation on Monday and the SPX closed down slightly. The ES gave us just a shallow EW a-b-c correction since pre-market Friday. We are close to our for June and are expecting a 5-10% correction in the SPX from June to July.
# Gold is testing $1290 Monday night as the bullish sentiment remains at 52-wk lows. Gold continues to rally after the NFP jobs report. A daily close above $1308 will be very bullish. The PM sector could have a big run by mid-June.
# Silver finished an EW a-b-c decline into early 6/1 and then we rallied hard after the NFP jobs report into Monday's session.
# Crude oil sold off Friday as a pervasive bearishness permeates Wall Street on the oil sector. Crude oil tested last week's low on Monday as the oil stocks remain unloved. This is turning into a contrarian play. Across the board commodity weakness in the face of a declining USD and resilient bond prices are casting a deflationary pallor over the markets.
# Bonds sold off on Monday but continue to hold up despite all-time highs in stocks. This is notable from a contrarian point of view.
# The Dollar Index is due a yearly cycle low, but can't seem to rally impulsively. The USD continues to decline Monday night. We may have entered a long-term bear market....