The following video provides mid-Session technical analysis on the US stock market, gold, silver, & US Dollar focusing on the near-term & intermediate-term outlook. Silver or Gold level access initially required.
Before I started recording the video, the stock futures had broken out above the bull flag patterns that formed overnight, which indicated more upside to the price targets that I recently laid out although I reiterated my skepticism of whether or not those flags might play out. As the recording progressed, the indexes were pulling back to test the flags from above which is not idea price action following a breakout above a bull flag continuation pattern, which should be followed with impulsive buying comparable to the rally (flagpole) leading up to the formation of the flag. As such, I started to shift more to the possibility the current rally off Tuesday’s lows may fall shy of my previous bounce target range. As such, the video runs a bit longer than usual but I wanted to point out the slight shift in my near-term outlook discussed about half-way into the video.
The early part of the video covers some nearby support & resistance levels as well as potential developments to watch followed by the intermediate-term outlook & price targets for the major stock indexes. A relative brief update on gold, silver, & the US Dollar is provided towards the end of the video.
Key points:
- The price action following today’s earlier breakout above the bull flags on the 60-minute charts of the stock futures has not been ideal.
- Those 60-minute bull flags are currently being backtesting from above: Near-term bullish if the indexes hold & rally off the backtest, bearish if they move below the bottom of the flags.
- Zooming out to the daily charts there are potential bear flags forming on the major stock indexes. An impulsive break below those potential flags (ideally later today or tomorrow) could trigger the next impulsive wave of selling & take the indexes down to my intermediate-term swing targets (covered in the video).
- /DX (US Dollar) broke support with /GC (gold) & /SI (silver) breaking above resistance although with any impulsive/convincing follow-through as of yet.