Bottom Line:
No change:
All four primary US trading indices remain between pivots of at least two degrees of time. The next 5% move is a total guess. That isn’t what people want to hear, but it is the current reality.
The SPX third quarter Auction is quite narrow and range extension would not be a surprise.
The analysis I share is what I would be doing as a trader regardless of whether or not anyone was reading, which may be the case :).
It is very easy for me, as a trader, to own what I don’t know and wait. For some that read this, there is a thought that there is AN answer, and RIGHT NOW. It doesn’t work that way.
I do think, and this is what objective Auction Market Analysis suggests, the US stock indices are likely to soon make a directional move of greater duration than two hours.
Friday’s relatively wide range down days placed the indices at the cash close very near important downside inflection points. The indices are in a structural condition suggesting initiative (trending) moves in either direction must be respected and not faded. Based on Friday’s cash close and as we head into Globex trade Sunday evening I have to be biased to more downside, and it could accelerate.
A reversal from these levels and a close by all four US primary trading indices would be bullish.
RUT Quarterly Auction
NDX Quarterly Auction
SPX Quarterly Auction
Dow Quarterly Auction
Daily Indices
Internals
No help. Internals will break in the direction of price.
US 10-yr Notes
Sellers continue to step on any rally. Until a higher pivot is formed you have to favor shorts.
US Dollar
No change:
Very well defined upper and lower level at the moment.
Gold
Gold is between critical intermediate to long-term levels.
Crude
Favor longs.
