dinsdag 11 juli 2017

Tuesday Market Observations

# The NQ completed a "minimal EW a-b-c" correction into 7/6 and then rallied in 5-waves on the hourly into Monday. The FANG stocks had a good day on Monday. We are still vulnerable to a normal bull market correction of 10% going into 7/23, the 34-day Fibonacci step out from the 6/19 highs in the NDX and SPX. After the June-July correction (a sideways 4th wave?) runs its course into 7/23, we're expecting a SPX high for the year around August 20 (+/-3 trading days) with a minimum target of SPX 2480.
# The SPX rallied in 5-waves into Monday, but the volume was low and the market pulled back into the close. Financial stocks have important earnings this week and this should set the tone. The XLF could be making a double top with the high on 3/1. An EW 5-waves down on the XLF 15-min chart could be the bearish tell.
# Gold and silver also gave us a bullish reversal Monday after the Full Moon and gold stocks led the way. More rally is expected on Tuesday.
# Crude oil reversed higher after the Full Moon.
# Bonds look 5-waves down on the hourly and ready for a bounce.
# The USD made a 5-waves down on the hourly after the NFP jobs report on Friday then bounced. The trend may still be down....