The SP, NAZ and DOW had NR7 “Zdays” (consolidation days). Yesterday was a buying climax in the Nazdaq. Today the Russell made its full retest up and also made new momentum highs on the 2-period ROC. This can signal eventual continuation, however, a failure test at the top of the 20 day range is possible. A close under 2924 basis the June SPs would be a large bull trap.
Bonds and Bunds are expected to have continuation to the upside as today was the first day up out of a three bar breakout. Watch for an early morning dip to buy.
The Dollar confirmed its upside breakout with range expansion. Monitor for continuation patterns to form against the hourly EMAs over the next 2 days as it is very short term overbought.
Gold has a three bar breakout pattern. Silver has converging trend lines – if it takes out Tuesdays high it will give a wide range reversal buy.
Crude was on a sell short day on Tuesday and though it closed with a pinball buy, it can trade lower to the 5 SMA first.
Rus, Bonds, Tens, $ – new 2 ROC momo highs to the upside. EC, AD, CD, S, LC – new 2 ROC momo lows to the downside. markets tends to fill out some range to establish a new value area after this happens.
Provided below will be a link to the “Tradesheet Key” which will offer an explanation as to what the column headings represent. You may find it helpful to print out the sheet and have it for reference when looking over the daily homework.
Todays Homework Sheet: