Tuesday am Technical Video- S&P STRUCTURE and GOLD
Trends remain negative near-term and difficult to call any sort of low at hand until S&P gets up ABOVE 2747, and initially last week’s 2735 that was broken will have importance, structurally. On the downside, earlier 2714 is important.. under leads to a test and likely break of yesterday’s 2700, with ultimate targets on this first pullback from mid-June near 2683-5 for S&P Sept futures.
(Both of these Resistance areas are highlighted below) Technically there should be an above average likelihood of some stabilization to this pullback in the next 1-2 days that drives a rally into theJuly 4 holiday, thinking that Industrials, Materials and Financials have gotten sufficiently washed out in the very short-term. The Tech snapback today thus far can’t be given too much credence as being all that meaningful and most charts still show Tech to have a chance to weaken further over the next few days. Gold is weakening today but is now into a BUY ZONE of support and would look to buy Gold between 1240-1255 into end of week- Fractional weakness in DXY today while very little change in Treasuries
S&P- As mentioned, prices have violated support and pulled back to near 38.2% Fib retrace of the prior move higher from early April
Demark counter-trend exhaustion is NOT yet in place for S&P, so one final pullback could be possible.. (and from an Elliott standpoint this would create 5 waves down from mid-June. (Breaking yest lows causes a buying oppty near 2683-5)
However, a move straight up over 2747 would give conviction that this selloff is over for now. So those are the key areas to watch. 2747. And 2700 and trend Still negative for now