Was in on Sunday and chilled in my in-tray
at www.technicalindicatorindex.com
Today's Market Comments:
Gold has formed an interesting correlation with the Euro. The moves since January 2021 have been almost tick for tick in tandem. Check out the comparison charts on page 48. Gold remains in the final stages of a massively Bullish Cup and Handle pattern, wrapping up the Handle portion. Gold is oversold. Once we see a new Buy signal in our HUI key trend-finder indicators, we can be confident that the next major rise in Gold is starting.
The HUI is now seeing a sharp Bullish Divergence between prices and its 10 day average Advance/Decline Line Indicator, suggesting that Mining stocks, and likely Metals, are soon going to head higher, starting a new rising trend.
Gold should be headed sharply higher over the coming months and years. It could reach 3,000 as it rises, perhaps quite a bit higher than that over time.
We have updated all charts for all markets we cover in this Weekend's newsletter.
Stocks rose Friday, July 2nd, on light pre-holiday weekend volume. There were no changes to our short-term key trend-finder indicators from Friday's action. The small cap Russell 2000 Purchasing Power Indicator is on a Sell signal. Our short-term Blue Chip key trend-finder indicator remains on a Buy signal, and the Tech key trend-finder indicators remains on a Buy signal.
The Industrials have now reached the point of decision. They popped slightly above the upper boundary of its declining parallel trend-channel from their May 10th all-time high. If this resistance level holds, then the likelihood is they have started a new large degree declining trend from May 10th, in a series of waves one down and two up. If this is the case, then wave three down of three down could begin next week, which should take prices sharply below the bottom boundary of this parallel trend channel, initially below 33,000, with more downside potential. We show this in the charts on pages 34 and 35.
Should the Industrials rise above the May 10th high, above 35,000, then the decline since May 10th is wave d-down, with e-up underway, taking the Industrials to a new all-time high to finish the pattern.
Both the S&P 500 and the NASDAQ 100 are finishing short-term Rising Bearish Wedge patterns. There could be a bit more upside to complete them. However the larger degree patterns are nearly complete for the Industrials, S&P 500, NASDAQ 100, Russell 2000, and Dow Transportation average, and are ominous, warning that a major stock market plunge is going to start over the coming year.
The charts for all markets show that a massive stock market crash is on its way. Patterns are the stock market speaking to us, letting us know where they are headed next. They are the accumulation of all knowledge on the planet from all sources, and the patterns identify the next major trends we can expect.
The S&P 500 has formed a Bearish divergence with its Demand Power measure, and also its 10-day average Advance/Decline Line Indicator, suggesting a top is approaching. There is also a Bearish divergence between the Secondary Trend Indicator and the S&P 500.
Our intermediate term Secondary Trend Indicator generated a Buy signal June 24th. It was flat Friday (out of a possible 9 points), at positive + 22. It needs to fall below negative - 5 for a new Sell signal.
Our Blue Chip key trend-finder indicators generated a Buy signal June 25th, 2021 and remain there Friday, July 2nd, 2021. The Purchasing Power Indicator component triggered a Buy signal Monday, June 21st. The 14-day Stochastic Indicator generated a Buy on June 24th, 2021, and the 30 Day Stochastic Indicator generated a Buy on June 25th, 2021. When these three indicators agree, it is a short-term (1 week to 3 months' time horizon) key trend-finder directional signal. When these three indicators are in conflict with one another, it is a Neutral (Sideways) key trend-finder indicator signal.
Demand Power was flat at 441 Friday, while Supply Pressure fell 3 to 414, telling us Friday's Blue Chip rise was mild. This DP/SP Indicator moved to an Enter Long Signal June 22nd, and remains there Friday, July 2nd, 2021.
Today's Mining Stocks and Precious Metals Market Comments:
The HUI key trend-finder indicator triggered a Sell signal June 9th, as the HUI 30 Day Stochastic triggered a Sell signal June 9th, 2021, and our HUI Purchasing Power Indicator triggered a Sell on June 3rd. When these two indicators agree, it is a directional signal, and when at odds with one another, it is a combination neutral signal. The HUI Demand Power / Supply Pressure Indicator moved to a Sell signal June 14th. On Friday, July 2nd, Demand Power Up 4 to 357 while Supply Pressure fell 5 to 405, telling us Friday's HUI rise was moderate.
DJIA/SPY PPI Rose 3 to + 31.67, on a Buy
DJIA 30 Day Stochastic Fast 60.00 Slow 46.67 On a Buy
DJIA 14 Day Stochastic Fast 80.00 Slow 58.33 On a Buy
DJIA % Above 30 Day Average 60.00
DJIA % Above 10 Day Average 86.67
DJIA % Above 5 Day Average 90.00
Secondary Trend Indicator was Flat at + 22, On a Buy
Demand Power Flat at 441, Supply Pressure Fell 3 to 414 Buy
McClellan Oscillator rose to negative - 3.48
McClellan Osc Summation Index + 3162.83
Plunge Protection Team Indicator - 2.60, an "OFF" signal
DJIA 10 Day Advance/Decline Indicator + 418.6 on a Buy
NYSE New Highs 203 New Lows 16
Today's Technology NDX Market Comments:
The NDX Short-term key Trend-finder Indicators moved to a Buy signal Tuesday, June 22nd, 2021, and remain there July 2nd, 2022. The NDX Purchasing Power Indicator generated a Buy on June 22nd, 2021, the NDX 14 Day Stochastic triggered a Buy on June 24th, and the 30 Day Stochastic triggered a Buy signal on June 29th, 2021. When all three component indicators are in agreement on signals, it is a consensus directional signal. When they differ, it is a sideways signal.
The NDX Demand Power / Supply Pressure Indicator moved to a Buy signal Friday, June 4th and remains there July 2nd. On Friday, July 2nd, Demand Power Rose 6 to 461, while Supply Pressure Fell 4 to 415, telling us Friday's rise was moderate.
The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal May 24th, 2021, and needs to rise above positive + 5.0 for a new Buy. It rose to positive + 29.6 on Friday, July 2nd.
NDX PPI Up 7 to 308.98, On a Buy
NDX 30 Day Stochastic Fast 60.98 Slow 60.00 On a Buy
NDX 14 Day Stochastic Fast 69.05 Slow 62.14 On a Buy
NDX 10 Day Advance/Decline Line Indicator + 29.6 On a Buy
NDX Demand Power Up 6 to 461, Supply Pressure Fell 4 to 415 Buy
RUT PPI Fell 2 to 205.61, on a Sell
RUT 10 Day Advance/Decline Line Indicator + 87.1, On a Sell
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