I’ll have the Daily briefing and Strategy Analysis to you by early Sunday evening. In the meantime here are a few quick random observations.
The price/breadth pattern is Bullish. If this is correct any further weakness below Friday’s lows should be minimal and very short-lived.
All four of the primary indices have potential large buying tails, which are a signal of strong rejection of the lower prices. They have to hold through Monday’s trade to be validated. From high close to Friday’s close the Dow is off. 66%, the S&P is off 1.06%. The continued under performance of the Naz and Russ is a negative, but the S&P and Dow can rally a long way before a bearish resolution occurs, if the resolution is going to be bearish.
Bonds have traded into a long-term KRA. Notes are strong, too.
Gold showed some strength Friday, but needs to show strength above 1621 before we can consider the path of least resistance to be up.
I still like copper short against 34500 ish.
I’m not ready to give up on the long side of the US Dollar yet, but it needs to be watched closely and nimbly traded.
I still prefer shorts in Beans and Corn. Wheat, too, but it should turn down from near this recent spike up if I’m right about favoring shorts.
More Sunday! Have a super weekend.