The chart of the SP cash above shows the breakdown below the previous swing lows (confirmed by the Rus, Naz and Dow). The indicator on the bottom of this chart is the compression meter, similar to a standard deviation function. Bottoms or tops of the impulse swings come in when this hits an extreme – (see past levels). Currently the meter has a ways to go before it hits an extreme and impulse is down. The market closed with a large minus tick reading…short term oversold. However, there are intraday grail sales that come in at the 15 minute EMA. The tape was heavy. Theonly thing that would change the bearish outlook would be a close back above 1838. Otherwise, look for it to travel back down to the lower quadrant (shown above) over the next few weeks. Any early morning rally or gap up will set up a short sale. A morning flush below Thursdays lows sets up buy but for a scalp only….
Bonds testing 20 day swing high resistance area. CD will have a pinball Buy. EC has enough upside momentum to eventually take out that previous 20 day high. Gold might just put together an extended run to the upside (!).
Have a fabulous weekend! Linda