2:45 PM ET I’d call a low here but indicators are crashing. Here’s what should happen.
I was so stunned by what I saw yesterday that I wanted to break it to everyone right now.
The withholding tax data for July through July 20, showed a 5% year to year GAIN!
Stocks pulled back this morning in the pre market, reaching trend support and a 2-3 day cycle projection of 3228.
Hourly indicators are still bearish, but have reached the levels of their last minor lows.
An obvious place for them to buy the dip again.
Fed QE and Treasury supply remain roughly in balance. The Fed is still funding most, if not all new issuance, either by direct purchase of…
Yesterday was a clear breakout. This morning we have follow through. The 5 day cycle projection has risent from 3255 to 3285. Channel resistance on the daily chart, 3270. And if that’s cleared 3325. If 3265 holds, then we pull back to 3230 and wait.
Gold has broken through minor resistance and seems headed for its 13 week cycle projection before this move is exhausted. I’ve added a new mining pick to our list.
The ES was weak overnight. Fool me once etc. Don’t even start to think about the downside unless they take out ES 3185.
There are dangers everywhere. And opportunities. This report lists a few, with clear action parameters.
The Fed doesn’t know what it will do until it does it, neither does the market. And it’s likely to take the market longer to figure it out than it takes us, if we’re paying attention. Which we are.
Here’s what we know and what to do about it.
Yes, it looks bullish again. Although last night toward the close in New York when it looked like it would launch it stalled, and it’s still in that same range. So the fuel doesn’t seem to be there for follow through. Let’s see what happens this morning. A failure to get through 3212 on the ES would give the bears the ball.
For now, the indicators say a move up is likely with targets of 3220-3230. Not a big deal.