MARKETS UPDATE (5:30 pm EDST)
The broad stock market is giving us mixed bullish and bearish signals at the moment. There is a chance the market could take a corrective dip now into the end of this week or into early next week. If that happens, we might look to buy. Good targets would be around 24,600 in the DOW and 2,850 in the S&P 500. Today the NASDAQ made a new weekly high while the DOW and S&P 500 did not. That gives us a bearish divergence signal and suggests a reversal down now. If instead the market stays bullish and continues to push higher, we will probably start looking for a new high somewhere in the very wide upcoming reversal zone of June 8- 30 (likely turning points could be June 16 and/or June 22). That high could be the final crest in the current medium-term cycle and would likely be a good point to sell short. Even if we get a brief correction down now and buy, we will still be looking for that high in the reversal zone to unload our long positions and go short. (Remember, despite being short-term bullish, this market is very ripe for a serious correction soon). Still on the sidelines of the broad stock market.
Gold and especially silver prices are up today, which is the first day of a reversal zone specifically for the precious metals (June 1 - 9). We also note that silver is making a new weekly (and monthly) high while gold is not (bearish divergence). As with the broad stock market, this could be a set-up for a brief but sharp correction down. If so, we will be looking to buy. Gold could move down to the $1600 level or even lower, but may only test $1700. (It's also possible gold already put in its low last Wednesday at $1694). Silver could be a good buy around $17. It is still early in this new reversal zone so both metals could go higher before turning down. Let's stay on the sidelines of the precious metals for now.
Crude oil prices pushed just a bit higher today. The new medium-term cycle for this market started on 4/22 at the low of $29 (June contract chart) from which crude has rallied to just under $39. A sub-cycle correction is due over the next week or two. If prices dip down to around $35 or even a bit lower this week or next, I may consider buying. But more rallying, especially into late next week would probably be a set-up for a short sell. A reversal zone specifically for crude is coming up June 9 - 17 so we will watch that time frame carefully for a significant high or low to trade. Still on the sidelines of crude.
The broad stock market is giving us mixed bullish and bearish signals at the moment. There is a chance the market could take a corrective dip now into the end of this week or into early next week. If that happens, we might look to buy. Good targets would be around 24,600 in the DOW and 2,850 in the S&P 500. Today the NASDAQ made a new weekly high while the DOW and S&P 500 did not. That gives us a bearish divergence signal and suggests a reversal down now. If instead the market stays bullish and continues to push higher, we will probably start looking for a new high somewhere in the very wide upcoming reversal zone of June 8- 30 (likely turning points could be June 16 and/or June 22). That high could be the final crest in the current medium-term cycle and would likely be a good point to sell short. Even if we get a brief correction down now and buy, we will still be looking for that high in the reversal zone to unload our long positions and go short. (Remember, despite being short-term bullish, this market is very ripe for a serious correction soon). Still on the sidelines of the broad stock market.
Gold and especially silver prices are up today, which is the first day of a reversal zone specifically for the precious metals (June 1 - 9). We also note that silver is making a new weekly (and monthly) high while gold is not (bearish divergence). As with the broad stock market, this could be a set-up for a brief but sharp correction down. If so, we will be looking to buy. Gold could move down to the $1600 level or even lower, but may only test $1700. (It's also possible gold already put in its low last Wednesday at $1694). Silver could be a good buy around $17. It is still early in this new reversal zone so both metals could go higher before turning down. Let's stay on the sidelines of the precious metals for now.
Crude oil prices pushed just a bit higher today. The new medium-term cycle for this market started on 4/22 at the low of $29 (June contract chart) from which crude has rallied to just under $39. A sub-cycle correction is due over the next week or two. If prices dip down to around $35 or even a bit lower this week or next, I may consider buying. But more rallying, especially into late next week would probably be a set-up for a short sell. A reversal zone specifically for crude is coming up June 9 - 17 so we will watch that time frame carefully for a significant high or low to trade. Still on the sidelines of crude.
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