vrijdag 21 juli 2017

Friday Market Observations

# The SPX and NDX made new all-time closing highs again today as stock markets get pulled up into the high-energy 7/20-7/21 turn window that sometimes marks important peaks in bull market years. The low volume test of QQQ highs Wednesday at 143.8 argues for a pullback to test the 7/12 gap-fill area of 139-140
# For the second day in a row, we're getting a SPX sell signal on the 5-day MA on the CBOE equity put/call ratio and the SPX failed to break above "pivot resistance" at 2479, which implies a pullback to test the 7/12 gap at SPX 2430-2440.
# Crude oil took out the 7/4 high today before pulling back, we are bullish. We think the oil sector is making a major low here and should make a big run into 8/20.
# Gold and silver also rallied in an EW 5-wave pattern on the hourly chart from the 7/10 Full Moon into yesterday. We could see a corrective pullback, but we are bullish and the Comex gold COTs are arguing that the PMs have made a major low.
# Bonds finished an EW 5-wave rally on the hourly today before correcting.
# The USD gave us an EW 5-wave decline on the hourly chart and tested 94, we should get a bounce here on Friday....