Charts are working like a charm. No July sell-off, just as I predicted, weeks ago.
Called the top on the $SPX last week, using the same piddly 30 min. chart we've been watching since calling the previous top...
$SPX 30 min.:
To be honest; I did see the possibility of a higher high (4429ish), on a 15 min chart, but IF we had seen that, I had advised that I would be "selling that target aggressively". No doubt the sell-off was an engineered bear raid, as evidenced by the way the bid was lowered - just below 4280 - at Monday's open. I didn't even realize this Monday morning, but I did alert to the bottom, based on where the $VIX was sold.
$SPX - 15 min - revised: See where the market was taken down below my red line (breaking support).
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Of course the main stream media blamed the bond market, and covid variant "Delta", or China, or anything else they can dream up, for a one day sell-off.
Now what? Now, I'd get defensive again, and I'd stay that way, unless, or until the $VIX can get back below 15, and continue lower. As long as the $VIX remains elevated, expect more volatility.
What about oil?
The short term trend remains down, and see all the gaps left behind, on the chart below?
$UCO - I'd be watching to sell the 77.05, and 76.55, levels one this. Could pullback and test the 87.29 level, but that's not going to happen in 1 day. Try a couple weeks....
The most astounding chart of all?
Euro Banks
$FEZ - see where the price action bounced off my black line. That's no coincidence. Europe is going down, but not until the powers that be build some massive short positions. I think it could be several more months before we see the chart break. Could be that the Brexit deal falls apart, and turns into a trading war? Could be hyperinflation in Europe... which would force the Fed's hand, because the Fed (and the American tax payer) is now on the hook for the entire global financial system.
Take Care, AA
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