maandag 24 juli 2017

Monday Market Observations

# We think it's still time for a sharp sell off into the cycles nested bottom. Keep a lookout for a trigger...

# The SPX and NDX held 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 third day in a row, we're getting a SPX sell signal on the 5-day MA on the CBOE equity put/call ratio. The SPX failed also to break above "pivot resistance" at 2479. This implies a pullback to test the 7/12 gap at SPX 2430-2440 or QQQ 139-140. This kind of pullback calls for another leg up into August.
# Gold and silver made major lows and also rallied in an EW 5-wave pattern on the hourly chart from 7/10 into Friday Full Moon Timing Window. We are bullish and the Comex gold COTs are arguing that the PMs made a major low on 7/10. We're looking for a big rally into October
# Crude oil took out the 7/4 high on Thursday before pulling back; we are bullish for oil to make a big run into 8/20.
# Bonds finished an EW 5-wave rally on the hourly Thursday before correcting. We could se a bounce on Monday.
# The USD is in an entrenched downtrend and that is giving commodities across the board a boost....