BRIEF UPDATE ON THE BROAD STOCK MARKET AND PRECIOUS METALS (3:30 pm EDST)
All three broad stock market indices (DOW, S&P 500, and NASDAQ) made new weekly highs today, so our bearish divergence signal from yesterday is negated. We are seeing a hefty bullish rally today. It will become more bullish if the DOW and S&P 500 can close the week above their June 28 highs (31,885 and 3,945, respectively).
Gold prices have stabilized and are holding above $1700, and silver is staying above $18. This reluctance to fall lower is being supported by a sharp correction down in the U.S. Dollar Index. The greenback is in the early stage of a new medium-term cycle and has been very bullish over the last several weeks. It is due for a sub-cycle correction, however, which may be happening now. Nevertheless, the overall trend of the dollar is still quite bullish, so I suspect this corrective drop will be short-term. When the dollar starts to rally again, it should put more downward pressure on the precious metals.
We remain on the sidelines of the broad stock market and precious metals.
All three broad stock market indices (DOW, S&P 500, and NASDAQ) made new weekly highs today, so our bearish divergence signal from yesterday is negated. We are seeing a hefty bullish rally today. It will become more bullish if the DOW and S&P 500 can close the week above their June 28 highs (31,885 and 3,945, respectively).
Gold prices have stabilized and are holding above $1700, and silver is staying above $18. This reluctance to fall lower is being supported by a sharp correction down in the U.S. Dollar Index. The greenback is in the early stage of a new medium-term cycle and has been very bullish over the last several weeks. It is due for a sub-cycle correction, however, which may be happening now. Nevertheless, the overall trend of the dollar is still quite bullish, so I suspect this corrective drop will be short-term. When the dollar starts to rally again, it should put more downward pressure on the precious metals.
We remain on the sidelines of the broad stock market and precious metals.
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