vrijdag 28 juli 2017

Friday Market Observations

# The SPX gave us a "gap-up open" above pivot resistance at SPX 2479 only to sell off again. Our three consecutive sell signals in the CBOE equity put/call ratio may be kicking in. Friday's trade will be illuminating, just a corrective bounce from Thursday's lows will argue for more down and the target would be the 7/12 charts gap SPX 2430-2440. The QQQ led the market down mid-day yesterday and is just bouncing correctively overnight, so the gap at QQQ 139-140 is a target.
# Gold and silver corrected Thursday until about Noon EST and then bounced when the NDX start Selling Off. We may see a 5th wave higher to complete the rally pattern from 7/26. The Comex gold COTs are arguing that the PMs made a major low on 7/10. We are expecting a big rally into October.
# We think that crude oil made a major low at $42. The OIH may have made an important low Monday. We think the oil sector could make a big run into 8/20
# The USD is in an entrenched downtrend, but we're getting a sizable bounce here. Our bias is that we have started a major bear market. The $DXY started bouncing hard yesterday, but our bias is for lower lows soon....