The broad stock market has moved down a bit this week, but not enough to suggest that we are near a corrective bottom. The current reversal zone for equities extends into most of next week so there is still time for this market to either rally to new highs or drop lower and closer to our targets of 19,200 in the DOW or 2,170 in the S&P 500. New highs may give us a shorting opportunity next week, but if we move closer to those targets we will likely be looking to buy. Still on the sidelines here.
Gold and silver both rallied this week and made new weekly highs yesterday (they are both down today), but they did this into the dead center of a strong reversal zone for precious metals (which continues through most of next week) so we need to be cautious about going long. We did not get our ideal set-up this week of just one of these metals making a new low (intermarket bullish divergence), but it could still happen next week in the current reversal zone. If instead prices continue to rally stongly next week, I will consider selling short from a top, but any price dips now could be buying opportunities, especially if we see bullish divergence where either gold or silver (but not both) make a new low by next Friday. On the sidelines of gold and silver for now.
Crude oil prices rose a bit this week but did not get above the Dec.11 high of $55.44 (Feb. contract chart). This market is similar to the broad stock market now and can either rally next week to make a new high (above $55.44) or fall to complete a cycle or subcycle bottom within this current reversal zone (which ends next Friday). Next week's price moves could present us with a top to sell short or a bottom to buy. We remain on the sidelines for now,