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Monday, July 10, 2017

Market Update 7/10/17

Friday we saw a sharp reversal, out of the down-turned triangle we were watching, and short covering going into the weekend, as predicted  -  see Friday's super-bullish update - but today I'm unsure whether this triangle is a bearish leading diagonal triangle. in larger consolidation pattern, or the end of consolidation. I think we could see continued consolidation, and maybe even a shake out below 2400 key support, before we see money put to work again.

$SPX short term resistance looks like 2430. Support at the pink line (as always). I'm not willing to make a short term prediction here.       

The larger consolidation pattern seen on the 2 hr chart:

Could even see a washout around the 2385  level before the end of the month.

We're also seeing an interesting triangle formation in the gold miners. Looks like bullish consolidation in a down-turned wedge, which should complete near the end of July, if the pattern holds.

Even Canada continues to consolidate in a funky down-turned pattern, but the interesting thing to note is that this coincidences with Friday's washout in Oil. I think we're about to see a big reversal in both...

 The rally in tech can continue, but I prefer Canada, and Oil here. and Canada, on this pullback.

Typical wave 4 - seen on the daily candlestick chart

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