Daily chart for S&P
Daily chart for NASDAQ
The indexes looked like they are coming back down to test support at the top of the wedge. This would be around 1,150 on the S&P. The indexes are poised to make new highs for the year over the next few weeks. Bearish divergences are beginning to form on the indexes but I reckon it would be 2-3 weeks before these divergences correct themselves. In the meantime, enjoy the rally while it lasts.
Daily chart for Gold (GLD)
Gold hit XOP on Friday. I’m expecting a correction soon. It had been a crazy run since July and gold had been running without any dips in the uptrend. This is bad for a sustainable rally so any dips would actually be good for a longer term rally up to my final target at 143.
Daily chart for Crude Oil (USO)
Crude had formed a double top right below its 200 day moving average. This is very bearish but it had been trending sideways since June now. Not expecting a change in trend anytime soon. It should be retracing to 34 or 33.50 over the next few weeks.
Daily chart for Dollar (UUP)
The dollar is still in a steep downtrend. Downward momentum is still strong but I’m expecting an entry for a strong bounce soon. However this should not happen until the dollar hits support levels at 22, 21.94 or 21.78.
Daily chart for Natural Gas (UNG)
Long Term chart for UNG
UNG is at an all time low now. Bullish divergences are forming on the daily chart and I believe there should a bullish entry within the next 2-3 weeks. This would be a long term play on the health of the global economy. Buy the ETF itself and hold it for the next few years.
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