MARKETS UPDATE (5:30 pm EDST)
Today we entered day one of our new general reversal zone for all markets (July 13-21). The NASDAQ made a new all-time high, the S&P 500 closed its "gap zone" and exceeded its June 8th high, but the DOW remained below its gap zone and well below its June 8th high. This keeps alive our strong intermarket bearish divergence signal. After an early morning rally, all three indices took a dive later in the afternoon with the DOW losing all of its morning gain and the S&P 500 and NASDAQ in negative territory - also a bearish sign. The correction we've been expecting could be starting now unless the DOW can muster some strength and push higher over the next several days. Whether a top is already in or will happen later this week, we are waiting for a correction that should take us to a low that will be the final bottom to the current medium-term cycles in all three market indices and thus a good spot to buy. Our targets are still around 23,400 in the DOW and 2,700 in the S&P 500. Still on the sidelines of the broad stock market.
Silver rallied strongly this morning and made a new weekly, monthly and cycle high at $19.35 before backing down near the end of the day. Gold, however, did not even get above last week's high before backing down and closing in the lower third of today's range. This is a strong bearish divergence signal and it could be the start of a significant correction that, like the broad stock market, will take us down to the final medium-term cycle lows in both gold and silver (which are due soon). These will be good buy spots, especially if gold gets close to $1675 and silver down to $16 (although silver may not fall that far - maybe only to $17.50). We will watch for these targets to buy. On the sidelines of gold and silver for now.
Crude oil seems to be finding resistance just below its high from June 23 at $42.26 (June contract chart). It may be ready to turn down now, or it could push higher to a new top in this week's reversal zone. Either way, we will wait for some sort of sub-cycle correction (due soon) before contemplating any trade. Still on the sidelines of crude.
The U.S. Dollar Index may be finding some support just above 96, and if so, we could see it rally from a bottom in this week's reversal zone. Any rally now could be the trigger that sends precious metal prices down to the targets mentioned above. We will watch for this.
Today we entered day one of our new general reversal zone for all markets (July 13-21). The NASDAQ made a new all-time high, the S&P 500 closed its "gap zone" and exceeded its June 8th high, but the DOW remained below its gap zone and well below its June 8th high. This keeps alive our strong intermarket bearish divergence signal. After an early morning rally, all three indices took a dive later in the afternoon with the DOW losing all of its morning gain and the S&P 500 and NASDAQ in negative territory - also a bearish sign. The correction we've been expecting could be starting now unless the DOW can muster some strength and push higher over the next several days. Whether a top is already in or will happen later this week, we are waiting for a correction that should take us to a low that will be the final bottom to the current medium-term cycles in all three market indices and thus a good spot to buy. Our targets are still around 23,400 in the DOW and 2,700 in the S&P 500. Still on the sidelines of the broad stock market.
Silver rallied strongly this morning and made a new weekly, monthly and cycle high at $19.35 before backing down near the end of the day. Gold, however, did not even get above last week's high before backing down and closing in the lower third of today's range. This is a strong bearish divergence signal and it could be the start of a significant correction that, like the broad stock market, will take us down to the final medium-term cycle lows in both gold and silver (which are due soon). These will be good buy spots, especially if gold gets close to $1675 and silver down to $16 (although silver may not fall that far - maybe only to $17.50). We will watch for these targets to buy. On the sidelines of gold and silver for now.
Crude oil seems to be finding resistance just below its high from June 23 at $42.26 (June contract chart). It may be ready to turn down now, or it could push higher to a new top in this week's reversal zone. Either way, we will wait for some sort of sub-cycle correction (due soon) before contemplating any trade. Still on the sidelines of crude.
The U.S. Dollar Index may be finding some support just above 96, and if so, we could see it rally from a bottom in this week's reversal zone. Any rally now could be the trigger that sends precious metal prices down to the targets mentioned above. We will watch for this.
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