All the composite charts that I am tracking look like the markets are stalling and about to make a directional move soon. This time, although slightly bearish in outlook, I am keeping a little more open minded.
Here's why:
The Bullish case
It is appearing that the USD may Benin a downtrend if it does not bounce for current support levels. A bearish USD indicates a bullish equity market and gold. Similarly, gold looks slightly bullish and I cannot see how it can tank hard from technicals just now.
The Bearish case
The S&P500 futures appear to have stalled and are doing a bit of a rollover (to die) kind of thingy. That said, I am
Wondering when solid news would come out and move the markets. Currently, there are no major news worthy of global epic proportions just yet, despite some European news. The VIX is another bearish indicator as low market volumes combined with VIX on support at time cycles indicate a bear inclination.
ES (top) & VIX (bottom) Charts
From the charts, note the daily Sell signals on /ES which have not been invalidated by the price action as yet, hence, the decision is coming soon. The VIX weekly and Daily have Buy signals with supporting MACD, and hence the caution for a possible bearish turnout.
Seriously, I would be quite happy to sit out for now, with a small bear position. Perhaps a good start will be seen this Friday when the Non-farm payrolls data are released.
Cheers from me posting through iPad!
Take care and be safe!
The MadScientist
5th July 2012
* The above charts and text in italics were added a day later.
Note: ALL material posted here is from my personal opinion, and my opinion may differ or change without notice. These do NOT constitute as solicitation, investment nor financial advice. By reading the materials presented here, Readers acknowledge the awareness that the materials are intended for educational purposes only. For investment(s) advice, related decisions and/or actions pertaining to investments, always consult your own qualified financial advisors, brokers, etc.
Charts are from TD Ameritrade Thinkorswim platform
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