Last three days of the month and first two days of the new moth for years have had positive bias and this time around it is turning out to be no different. The DAX which we look at first thing when we sit down for overnight trading tone has been none stop – – trading sideways for 6 days instead of down to consolidate the gains made. The weekly charts can easily see a full retest back up. Nobody has been looking for this but the red green red down is basically and A B C in an overall uptrend.
The big non event is FOMC tomorrow – Bonds have low TP reading in anticipation. Russell also has a low TP reading implying maybe it is ready to join the upside party a bit better?
DIS was the RS leader and now has its first pullback below the 5 SMA – a Buy Signal. And the weakest market on the board (beans) – has a good Buy Divergence now that long have gotten stuffed for first notice day.
Pinball Buy on the Dollar index – (FOMC adds wild card to this). AD poised for a breakout.
SPs should open with a Burning Dog gap up – will the market trade down 4 points off its opening gap before noon? Still a lot of cash on the sidelines….
FIRST OF THE MONTH STARTS OFF WITH THE MARKET IN UNCHARTERED TERRITORIES.
Clean Slate – now ROCK N’ Roll! (Sklarew’s cross through the box measured move – middle image)