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Monday, July 17, 2017

Market Update 7/17/2017

Today's update is an easy one. Retail shorts being squeezed into July OPEX as expected.

$SPX support 2454. Resistance 2468.



Our larger wave "D" target - will probably hold up in a range going into OPEX Friday, and could even retest the highs again in early August, before giving it all back.  It ran too far, too fast to be a complete wave D.



 The $NDX also seems to be trading into a broadening triangle, but it also ran too far too fast. Movements within a triangle, should look like a zigzag pattern, not a straight line, I'm expecting a pullback, at least.



The $RUT - also whipsawing in an apparent broadening triangle, which if indicative of emotional markets, and capitulation tops.




I'm bearish in the near term, based on the $VIX trading in the bottom of the range, but as long as it remains trapped in this range between 9.50 - 17.50, the selling is going to remain orderly.



The NASDAQ 100 $VIX (VXN) remains elevated, and the trend intact. This scares me, and I wouldn't own tech for all the tea in China.



I think Oil and energy could see a bigger pullback going into OPEX, because this has been the trend... and the chart looks like it just completed a wave 5.









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