Good Morning Traders!
Extremely light volume (even for the last week in August) marked the trading session as the SPs tested one more time above 2000
in the early Globex session but failed to trade there in the US pit session. The SPs closed with an inside range day/NR7 and can move off in either direction Thursday morning.
To the upside is still testing above 2000 and to the downside the 5 SMA now comes in at 1995. Note: the SPs just tested this level to the tick on Wednesday. Below 1995 there is still an unfilled gap from the pit session (marked off on the chart above. It will be closed at 1991.75. The SPs closed with an “A-B-C” down on the pit session 30 minute chart (marked off above) and this pattern can also lead to a push above the previous swing high. Watch this down trending channel on Thursday for either gap fill to downside or upside break.
The Eurocurrency closed with three bars price overlap as well as 360 minute Buy Divergences at the end of a downside trend. It has a pinball Sell but can still test up into Sunday nights gap area as well as push back up above the 5 SMA. it is deeply oversold with massive fund short positions.
Copper has a Buy Day on the 2-period ROC. 321.30 is the daily 5 SMA.
Lastly, gold and silver: The seasonal short side has ended……Silver has had daily Buy divergences, though this has been one of the choppier setups, with multiple failures to rally. Gold has excellent structure (see chart of 120 minute GC above) but will this be a case of, you can lead the horse to water but cant force him to drink?…the structure is there to support a push up towards 1300 if players decide to show up before the holiday weekend.
The short term summation TICk chart is slightly oversold due to the selling in the Russell on Wednesday. However, breadth indicators are overbought. And, as mentioned yesterday, the Trin is also overbought.
Have a great trading day!
NOTE BREAKOUT CHARTS BELOW!