MARKETS UPDATE (2:30 pm EDST)
The broad stock market seems to be recovering today (at the time of this writing) from yesterday's dip, which was likely a temporary scare from a bit of hawkish rhetoric in the recent Fed meeting minutes released yesterday. We still seem to be on track for a rally into our next reversal zone (May 21 - June 1), so we will look for a cycle peak in that time frame (unless this market takes another dive tomorrow). Only the NASDAQ has made a new weekly high so far this week, which does give us an intermarket bearish divergence signal unless the DOW and S&P 500 also make new highs today or tomorrow (they are both close). We will remain on the sidelines of this market for now.
We are now at the center of a reversal zone specifically for the precious metals (May 17 - 25). Both gold and silver prices have been rising into this time frame, so we are watching for a peak and imminent correction. This may have already happened with silver's peak at $28.65 on Tuesday, and gold's peak yesterday at $1887, but prices haven't fallen far enough for us to buy (yet). Let's wait and see if they can go lower for a better spot to go long. We would like to see gold go at least to the $1800 level and silver probably somewhere in the $26 - $27 range. Still on the sidelines of gold and silver.
The U.S. Dollar Index is currently testing a strong support level around 90. As I have mentioned in recent blogs, a clear and strong break below there could spell trouble for the greenback. We are watching this carefully as a bearish shift in the dollar could be bullish for the precious metals. We are now and next week in the midst.of several overlapping reversal zones, so unless the dollar breaks down severely here, there is a good chance of a bounce and recovery from this 90 area of support.
After making a new weekly high on Tuesday, crude oil prices have been falling steeply. It appears crude is taking a more severe sub-cycle correction than we had anticipated. We enter a reversal zone specifically for crude tomorrow (May 21 - June 1, same as for equities). It looks like we could see a corrective bottom happen in this time frame. If so, it could be an excellent buy spot (as long as it doesn't go TOO low). We will watch for this next week. Currently on the sidelines of crude oil.
The broad stock market seems to be recovering today (at the time of this writing) from yesterday's dip, which was likely a temporary scare from a bit of hawkish rhetoric in the recent Fed meeting minutes released yesterday. We still seem to be on track for a rally into our next reversal zone (May 21 - June 1), so we will look for a cycle peak in that time frame (unless this market takes another dive tomorrow). Only the NASDAQ has made a new weekly high so far this week, which does give us an intermarket bearish divergence signal unless the DOW and S&P 500 also make new highs today or tomorrow (they are both close). We will remain on the sidelines of this market for now.
We are now at the center of a reversal zone specifically for the precious metals (May 17 - 25). Both gold and silver prices have been rising into this time frame, so we are watching for a peak and imminent correction. This may have already happened with silver's peak at $28.65 on Tuesday, and gold's peak yesterday at $1887, but prices haven't fallen far enough for us to buy (yet). Let's wait and see if they can go lower for a better spot to go long. We would like to see gold go at least to the $1800 level and silver probably somewhere in the $26 - $27 range. Still on the sidelines of gold and silver.
The U.S. Dollar Index is currently testing a strong support level around 90. As I have mentioned in recent blogs, a clear and strong break below there could spell trouble for the greenback. We are watching this carefully as a bearish shift in the dollar could be bullish for the precious metals. We are now and next week in the midst.of several overlapping reversal zones, so unless the dollar breaks down severely here, there is a good chance of a bounce and recovery from this 90 area of support.
After making a new weekly high on Tuesday, crude oil prices have been falling steeply. It appears crude is taking a more severe sub-cycle correction than we had anticipated. We enter a reversal zone specifically for crude tomorrow (May 21 - June 1, same as for equities). It looks like we could see a corrective bottom happen in this time frame. If so, it could be an excellent buy spot (as long as it doesn't go TOO low). We will watch for this next week. Currently on the sidelines of crude oil.
RSS Feed