For a while today I thought there would be a simple tag of 1120 and that was it….back to the races higher. But a late afternoon selloff proved the morning action was simply filling the gap from overnight trading.
Speaking of gaps, it certainly feels like the market wants to fill the gap left on the open of the 13th, which would take us down to 1100 or so. From there, it’s anybody’s guess but the setup would be there for a new leg higher into elections.
Supporting this move is the strength in bonds and support of the USDollar at 80. While the USD is still in the downward trend, it will be healthy to work off the oversold condition with a few days of meandering between 80 and 82. I will be looking for topping patterns in both bonds and the USD in the days to come, which would be net positive for stocks, gold and silver.
We are now in Daily NEGATIVE bias, and here’s the pivots. Trade the extremes!
- R1 -1,131
- Pivot -1,124
- S1 -1,114
- S2 – 1,107