Folks,
Market Observations for the Week: The SPX continued to power higher and closed above 3000 on Monday. Trumps tweet of a two-week delay in the onset of October tariffs is spiking the E-Mini after the market close to E-mini 3020. It appears that the SPX is rallying into the 9/12-9/13 Full Moon Timing Window and could make a high. It makes sense that the SPX can hold up until 10/1 and test 3100 or higher.
9/11/19 (Commentary for Wednesday) In impression fashion, the Russell 2000 led the market higher today on increased breadth and the SPX closed above 3000. After the market, Trump’s tweet about delaying tariffs in October is spiking the E-mini a test of the all-time high at 3029. In the bigger picture, though, we are looking for a potential target of SPX 3100 by 10/1. To us, the market is setting up in similar fashion to the fall of 2018 and new highs are possible until October. “Out of favor” sectors like oil, materials and the banks are getting a bid here as we get some rotation out of the FANG stocks. Gold made new highs to $1566 in a “running B-Wave” corrective pattern, but then came down in a C-Wave that tested $1494 late Tuesday – we should see a retracement bounce start early Thursday. The USD is breaking higher to test 98.6 Thursday night.
-
Big Picture on Stocks (UPDATED) – Chinese restraint on Hong Kong and playing nice on trade talks is allowing the SPX to rally into October. The SPX is looking to make a high in the 9/12-9/13 Full Moon Timing Window before a push to all-time highs above 3027 into the second half of September.
-
Big Picture on PMs (UPDATED) – Gold undercut $1500 late Tuesday and may be ready to reverse up on Thursday for a bounce into Friday’s Full Moon.
-
Stocks – With China playing nice on Hong Kong and US trade talks, the path of least resistance may take us to SPX 3100 by the end of September.
-
Gold – Gold undercut $1500 again late Tuesday and may be reversing higher in a bounce into Friday’s Full Moon.
-
Silver – Silver is reversing higher with gold Tuesday night and could test $18.60 by Friday.
-
Bonds – Bond yields continue to rachet higher giving bank stocks a boost.
-
Crude Oil – Crude oil giving us 5-waves down on the hourly into the Full Moon – bearish signal.
-
Dollar Index – The USD broke higher to test 99.
TURNING POINT DAY
The turn window for this week is 9/13-9/14, the Full Moon Timing Window.
Leave a Reply