As simple as it gets. The most important support levels and where the price is sitting... I'll leave it all in your imagination as the bottom half are not stocks, but assets that are showing signs of bullishness for the markets in general.
Comment:
So far what I am seeing in traditional markets:
USD is still weak and its trend is still down. Since DXY hit 92.6 I've been expecting a bounce and all I've gotten is a tiny increase and a lot of chop. Based on the charts I am looking, it might even take a few weeks before it makes a decisive move in either direction. Currently most of the increase in the USD was vs the GBP which fell a lot and stopped at a key support level (maybe some Brexit nonsense caused it). All that while USDCNH & USDMXN just had a bearish retest of their broken support levels, which to me are two of the most important EM currencies. Imho if the Euro closes above 1.205 it is game over for the USD. Until then I think 1.14-1.15 are still possible.
Metals and especially Copper look pretty strong. As long as Gold holds 1900 & Silver 25.6, I think they are bullish. Palladium looks very bullish and Platinum less so. Oil does look weak, but its drop might be over. I'd like to play a bounce at 28$ if it goes there.
Bonds seem to be getting ready for a move up, but I don't think they will break higher for a few weeks/months. So as bond yields go lower at this stage metals & stocks will go higher in the chase for yield/safety.
Now the situation for stocks is a tricky one, as this weeks close was better than expected. o far the correction has been driven by Nasdaq stocks which had a 20%+ move in 2 months. On the other hand however, the DAX, NIKKEI and several other indices look INCREDIBLY bullish or just bullish. Based on my TA, 3300 was my target on SPX which had been hit on futures, but not spot. Today it got hit on spot too and the close was... not bad. Something similar happened with NDX where my target was 10900-11100, where the lower bounce was hit today and the close was above the upper bound.
Yet I think for NDX the correction isn't over as it could still possibly go to 10200-10600, which means SPX probably will hit 3180 which is my final target. On the NDX futures there is a little cheeky double bottom that will probably be swept before we see further upside. Other US indices also look fine and a 3-5% correction wouldn't affect them much. The VIX also failed to make a new high my worries for a break out have subsided.
So to sum it all up, I've been getting less and less bearish with the more data I see and the more things are progressing. I've been mostly bullish on everything other than USD since late May, while I luckily started getting neutral/bearish right before the drop earlier this month. The truth is that I am still bullish long term and probably medium term, as for now all I am expecting is a further correction in a very specific sector of the global markets and need more price data before I can have more conviction as to whether markets go up or down.
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USD is still weak and its trend is still down. Since DXY hit 92.6 I've been expecting a bounce and all I've gotten is a tiny increase and a lot of chop. Based on the charts I am looking, it might even take a few weeks before it makes a decisive move in either direction. Currently most of the increase in the USD was vs the GBP which fell a lot and stopped at a key support level (maybe some Brexit nonsense caused it). All that while USDCNH & USDMXN just had a bearish retest of their broken support levels, which to me are two of the most important EM currencies. Imho if the Euro closes above 1.205 it is game over for the USD. Until then I think 1.14-1.15 are still possible.
Metals and especially Copper look pretty strong. As long as Gold holds 1900 & Silver 25.6, I think they are bullish. Palladium looks very bullish and Platinum less so. Oil does look weak, but its drop might be over. I'd like to play a bounce at 28$ if it goes there.
Bonds seem to be getting ready for a move up, but I don't think they will break higher for a few weeks/months. So as bond yields go lower at this stage metals & stocks will go higher in the chase for yield/safety.
Now the situation for stocks is a tricky one, as this weeks close was better than expected. o far the correction has been driven by Nasdaq stocks which had a 20%+ move in 2 months. On the other hand however, the DAX, NIKKEI and several other indices look INCREDIBLY bullish or just bullish. Based on my TA, 3300 was my target on SPX which had been hit on futures, but not spot. Today it got hit on spot too and the close was... not bad. Something similar happened with NDX where my target was 10900-11100, where the lower bounce was hit today and the close was above the upper bound.
Yet I think for NDX the correction isn't over as it could still possibly go to 10200-10600, which means SPX probably will hit 3180 which is my final target. On the NDX futures there is a little cheeky double bottom that will probably be swept before we see further upside. Other US indices also look fine and a 3-5% correction wouldn't affect them much. The VIX also failed to make a new high my worries for a break out have subsided.
So to sum it all up, I've been getting less and less bearish with the more data I see and the more things are progressing. I've been mostly bullish on everything other than USD since late May, while I luckily started getting neutral/bearish right before the drop earlier this month. The truth is that I am still bullish long term and probably medium term, as for now all I am expecting is a further correction in a very specific sector of the global markets and need more price data before I can have more conviction as to whether markets go up or down.