Bottom Line:
We have a big news week ahead. The NDX still continues to outperform. The RUT needs to continue to show strength to bolster an intermediate term bullish case.
It is important to honor the price levels of each index. The structural disparity continues.
SPX
The SPX reached an important intermediate term KRA on Friday. There is nothing between Friday’s high and the 4500 area as far as Auction Market “resistance”. Last week’s low is the immediate downside level.
Upper KRA: 4500
Lower KRA: 4258
NDX
Upper KRA: 15115-15272
Lower KRA: 14216
RUT
Upper KRA: 1895
Lower KRA: 1805-1797
DOW
Upper KRA: 34328-34730
Lower KRA: 33394
Internals
It has been 63 trading days since a -2000 NYSE closing breadth reading. This is bull market behavior. However, intermediate term breadth is still woeful.
VIX
VIX is in bull market levels.
30m SPX / Breadth
Continues to trade in bull leg behavior.
Thoughts:
Next week is busy news-wise. My anecdotal observation is that sentiment has become quite bullish. IF that observation is correct we may see some downside “surprise”, even if only temporary.
US 10-yr. Notes
Between levels.
US Dollar
Consider favoring shorts.
Gold
Between levels. 1931 is a critical intermediate term level.
Crude
Between levels. Consider favoring shorts.
