MARKETS UPDATE (4:00 pm EDT)
The broad stock market continues to jitter up and down with no definitive direction as we now enter the center of the current reversal zone (Sept. 5 - 14). We are still on the watch for either a significant high or low that could be a turning point for a significant rally or another correction. The lows this week on Tuesday (Sept. 5) in the DOW, S&P 500 and NASDAQ could be just that, but so far these indices seem reluctant to rally. If we don't see a significant high or low by late next week, we may have to wait for the next stronger reversal zone in the first week of October. Still on the sidelines of the broad stock market.
Gold and silver are both making new highs today and testing their resistance lines ($1,340 - $1,350 in gold and $18 - $18.20 in silver) as we approach the center of our reversal zone (specifically relevant to the precious metals). We would like to see a correction now that would give us a good spot to go long in both metals. The U.S. Dollar Index is currently testing strong support at 92. Hopefully it will bounce here (short-term) in this reversal zone and help push the metal prices down a bit. As I've mentioned in previous blogs, the U.S. dollar is dangerously close to breaking down and taking a severe plunge. If that happens, gold and silver prices could take off strongly. On the sidelines of gold and silver for now.
Directional momentum in crude oil charts had been 100% bearish over the last two weeks, but yesterday they switched to mixed bullish and bearish. This gives us more confidence to go long on any corrective dips. Because crude prices are rising sharply into the current general reversal zone (which overlaps with a specific crude oil reversal zone through Friday), we could see that correction start any day now. The cycle structure in crude oil is a little unclear at the moment so we will wait to see if we get a correction and how far down it goes. On the sidelines of crude oil.
The broad stock market continues to jitter up and down with no definitive direction as we now enter the center of the current reversal zone (Sept. 5 - 14). We are still on the watch for either a significant high or low that could be a turning point for a significant rally or another correction. The lows this week on Tuesday (Sept. 5) in the DOW, S&P 500 and NASDAQ could be just that, but so far these indices seem reluctant to rally. If we don't see a significant high or low by late next week, we may have to wait for the next stronger reversal zone in the first week of October. Still on the sidelines of the broad stock market.
Gold and silver are both making new highs today and testing their resistance lines ($1,340 - $1,350 in gold and $18 - $18.20 in silver) as we approach the center of our reversal zone (specifically relevant to the precious metals). We would like to see a correction now that would give us a good spot to go long in both metals. The U.S. Dollar Index is currently testing strong support at 92. Hopefully it will bounce here (short-term) in this reversal zone and help push the metal prices down a bit. As I've mentioned in previous blogs, the U.S. dollar is dangerously close to breaking down and taking a severe plunge. If that happens, gold and silver prices could take off strongly. On the sidelines of gold and silver for now.
Directional momentum in crude oil charts had been 100% bearish over the last two weeks, but yesterday they switched to mixed bullish and bearish. This gives us more confidence to go long on any corrective dips. Because crude prices are rising sharply into the current general reversal zone (which overlaps with a specific crude oil reversal zone through Friday), we could see that correction start any day now. The cycle structure in crude oil is a little unclear at the moment so we will wait to see if we get a correction and how far down it goes. On the sidelines of crude oil.
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