The broad stock market continues to look toppy as it surged up this morning but then started a steady slide down into the afternoon. There is a chance that last Thursday's low at 15,180 could have been the small correction we've been anticipating. This is an unusually small correction in terms of time (only one day after the peak) and depth (a little over 2%), but considering this market's strongly bullish momentum it is possible. I am still being cautious here and am going to wait for a deeper correction to buy (closer to 15,000). Note that if we do establish a long position it will probably be short-term as there could be a much more severe correction of the broad stock market later in the summer. Still on the sidelines of this market.
Both Gold and silver dropped a bit today and generated a few more short-term bearish momentum signals. We will therefore stay on the sidelines of this market until we get a stronger indication that the bottom of this major correction is in. Because we are likely watching the bottoming of a major long-term cycle in gold and silver, it may take at least several weeks before we can be reasonably certain the bottom is in. I would like to emphasize here that this unfolding bottom is a major opportunity to buy gold and silver at relatively low prices before another major uptrend begins. Despite the presently bearish momentum in the gold and silver charts, the long-term (over the next several years or more) technical and cycle picture for the precious metals continues to be very bullish.
Crude oil continues to dodge our attempts to buy it by refusing to drop into the $91 price area we would like to see for a correction. As with the broad stock market, last Thursday's low (near $92) may have been the extent of the correction (a shallow one). We will have to wait and see how the price moves this week to be sure of this. Momentum in crude oil is much more bearish than the broad stock market at the moment so the price could still move back down towards that $91 area. On the sidelines for now.