MARKETS UPDATE (3:00 pm EST)
It looks like the broad stock market isn't ready to roll over just yet. This may be due to heavy buying by fund managers spilling over into the new year encouraged by 2019's bullish market. All three indices (DOW, S&P 500, NASDAQ) made new all-time highs today so we will have no intermarket bearish divergence signal this week. Next week we enter a new strong reversal zone for all markets (Jan. 7 - 16). If the market continues to rally into that time frame, we will look for a top then (hopefully with a bearish divergence signal - one or two but not all three indices making a new high). Still on the sidelines here.
Gold and silver prices are up today as we continue to keep our eye out for a corrective dip to buy. Silver did make a new weekly high on Tuesday along with gold which negated Monday's bearish divergence signal. As with the broad stock market, we may have to wait for next week's reversal zone before we see a top in this market. On the sidelines of gold and silver for now.
Crude oil prices have been down from Monday's high of $62.34 (Feb. contract chart). Because Monday was the last day of our last reversal zone, that may be a significant top. If it is, prices should fall some more to a sub-cycle bottom for us to buy. But prices might also edge higher into next week's reversal zone before taking a significant sub-cycle dip. We shall have to wait and see what happens over the next several trading days. Still on the sidelines of crude oil.
It looks like the broad stock market isn't ready to roll over just yet. This may be due to heavy buying by fund managers spilling over into the new year encouraged by 2019's bullish market. All three indices (DOW, S&P 500, NASDAQ) made new all-time highs today so we will have no intermarket bearish divergence signal this week. Next week we enter a new strong reversal zone for all markets (Jan. 7 - 16). If the market continues to rally into that time frame, we will look for a top then (hopefully with a bearish divergence signal - one or two but not all three indices making a new high). Still on the sidelines here.
Gold and silver prices are up today as we continue to keep our eye out for a corrective dip to buy. Silver did make a new weekly high on Tuesday along with gold which negated Monday's bearish divergence signal. As with the broad stock market, we may have to wait for next week's reversal zone before we see a top in this market. On the sidelines of gold and silver for now.
Crude oil prices have been down from Monday's high of $62.34 (Feb. contract chart). Because Monday was the last day of our last reversal zone, that may be a significant top. If it is, prices should fall some more to a sub-cycle bottom for us to buy. But prices might also edge higher into next week's reversal zone before taking a significant sub-cycle dip. We shall have to wait and see what happens over the next several trading days. Still on the sidelines of crude oil.
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