BRIEF MARKETS UPDATE (3:30 pm EST)
The DOW made a new all time high on Wednesday while the S&P 500 did not for some more intermarket bearish divergence in our current reversal zone. Despite this bearish signal, equity markets seem reluctant to fall (which is not surprising as this is the week before Christmas), and I think they could push higher into next week. We will stay on the sidelines of the broad stock market for now.
Gold and silver are now falling into this reversal zone, but these metals look like they could go lower still. The U.S. Dollar Index made a new high at 103.1 on Tuesday, which was a little early in our reversal zone so its possible this index could push a bit higher into next week before taking a significant correction. If the dollar edges higher, it could push precious metal prices lower. On the sidelines of gold and silver.
Crude oil doesn't seem to be making a significant top or bottom (yet) in this reversal zone, and its cycle pattern is still ambiguous. We will stay on the sidelines here and see how prices move into next week.
I will most likely post another blog over the weekend with a little more detail in the current analysis of these markets.
UPDATE 12/25/16: Will post next update on Monday 12/26/16.
The DOW made a new all time high on Wednesday while the S&P 500 did not for some more intermarket bearish divergence in our current reversal zone. Despite this bearish signal, equity markets seem reluctant to fall (which is not surprising as this is the week before Christmas), and I think they could push higher into next week. We will stay on the sidelines of the broad stock market for now.
Gold and silver are now falling into this reversal zone, but these metals look like they could go lower still. The U.S. Dollar Index made a new high at 103.1 on Tuesday, which was a little early in our reversal zone so its possible this index could push a bit higher into next week before taking a significant correction. If the dollar edges higher, it could push precious metal prices lower. On the sidelines of gold and silver.
Crude oil doesn't seem to be making a significant top or bottom (yet) in this reversal zone, and its cycle pattern is still ambiguous. We will stay on the sidelines here and see how prices move into next week.
I will most likely post another blog over the weekend with a little more detail in the current analysis of these markets.
UPDATE 12/25/16: Will post next update on Monday 12/26/16.
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