The following video provides technical analysis of the US stock market, technology sector, gold, US Dollar & the Euro. Silver or Gold level access initially required to view.
- The major stock indices & tech sector made impulsive breakouts above several key resistance levels today, invalidating the near-term downtrend off the Sept 19th highs although both QQQ & XLK (tech sector ETF) are still at or below more significant downtrend lines off the July 26th highs at this time.
- While today’s breakouts are a clearly bullish technical development regarding the very near-term outlook for the market, the stock index futures (/ES & /NQ) remain precariously close to the short-term uptrend lines off Wednesday’s while at extreme oversold readings on the 60-minute chart which have typically been followed by corrections either immediately or shortly after minimal upside from those points. As such, a break of the near-term 60-minute uptrend lines has the potential to spark at least a minor pullback in the market along with the potential to make today’s breakouts fail, should the indexes fall much below the recent breakout levels.
- Most or all of the unofficial trade ideas on the half-dozen or so shipping stocks that were posted in the trading room on Monday have already hit their first price target with several trading at resistance now.
- /DX (US Dollar futures) have now made a clear & impulsive breakdown below the uptrend line/rising wedge pattern recently highlighted on the 60 & 120-minute charts with /E7 (Euro futures) also making a clear breakout & backtest of its comparable 60-minute downtrend line. This puts the $USD on a sell signal & the Euro on a buy signal until & unless those breakouts fail with a solid recovery of both trendlines.
- Following yesterday’s sell signal on the breakdown of the recently highlighted triangle pattern on the 60-minute chart, /GC gold has triggered a 2nd, potentially more powerful sell signal on an impulsive break below the key 1492 support level today with /GC backtesting the 1492 support from below at this time.
- The breakdown in the US Dollar should be a net-positive for gold prices although the risk-on/risk-off; flight-to-safety trade with gold moving inversely to the stock market has had a much larger impact on the price of gold so far in 2019. As such, we have bullish & bearish cross-currents on gold with more powerful force, (the flight-to-safety bid) prevailing at this time but with gold in a potential bull flag continuation pattern on the weekly chart & the stock market still appears poised for a substantial correction/bear market in coming months+ despite any marginal gains in the near-term, I plan to monitor the developments on gold, the US Dollar & the stock market closely going forward.
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