Tuesday Mid-day Technical Video
Mild rally in US while most of Europe closed down 0.75%. Breadth negative again on rally.. more Declining than Advancing issues..
Discretionary suffering today, the largest laggard, with Retail weakness- Dollar strength still looks to continue for 2-3 more days.. while Yields have begun to consolidate. This move in yields LIKELY taking the form of a triangle pattern and probably can still allow for yields to move a bit higher. But expect that both TY YIELDS and the US DOLLAR likely reverse back lower at some point in October. For now. Dollar moving higher today.. while yields lower.
Crude and most of Energy still positive and while getting stretched.. still right to stick with Energy
Precious metals having big session today, with both Gold and Silver up more than 1.3%.. This is increasingly looking like a good place to position for October. More on this below
Minor bounce from earlier lows and S&P up about 15 points from earlier lows. This pattern remains constructive unless we see prices move back down UNDER 2917 which is not expected right away today
Areas of focus- 2938-42 on upside. While 2917 and then 2907 on downside- with bullish bias for today
Precious metals index spiking after it looks to have formed a reverse Head and Shoulders pattern and breaking out of that today
This should be good for the Gold miners- See GDX, NUGT as ways to potentially play this move.. or potentially considering Gold and silver futures.. for those where that’s appropriate based on appetite for risk
Retailing getting hit hard today with stocks like BBY, FL, GPS, KSS, JWN all down more than 2% . Closing at lows should invite further selling and with NFLX now out of Discretionary sector.. This sector might begin to lag more meaningfully. Overall, stocks like LKQ, M, BBY, LB, JWN, AZO all look like good technical shorts.. for those looking- GPS, FL both down a bit too much for comfort today to initiate. But those also laggards and should be considered shorts on bounces, technically