This has been some rebound and move higher – across the board.
We are coming into a VERY key week from a cycles perspective and that means we could start down around mid-week or we explode higher. I was bearish going into the highs I blogged about in mid-July w/ the YEN hitting major targets and the DOW JONES hitting the measured move targets. There was a LOT of major long term targets that were hit and the market reacted downward, pretty strongly. But, that has all dissipated.
On the NYA we have a LONG TERM 1.618 projection target about 6% higher. There is also a Geometrically Derived (center of the Vesica Pisces) target a little higher. This entire zone “should” be resistance.
If NVDA blows thru thru the .786, then another target looms a little higher.
The banks have been rallying – they are NOT near the all time highs and are approaching resistance.
The XLP/NYA ratio is close to MAJOR support and if we lose that ‘neckline’ of support you can see the BUY of the ratio down at the ABCD on the .786. If we lose this support on the ratio, then I find it hard to believe the market will go down. Watch this level closely.
Even JUNK BONDS have gotten into the game BUT , again, a large target looms a little higher.
Look at the size of this candle wick in the VIX. WOWZA …
Home builders are cruising – but take a looksy a little higher and we have a major target appearing.
Here’s another target a little higher on the S&P 500.
And last, but not least, we have the USDJPY. The YEN is the big canary in the coal mine. Just a little higher is the .618 price projection and .786 and then the ABCD higher.
In July, it looked pretty clear cut that resistance was being hit .. now, it’s NOT as clear but still begs of caution going into this week.
I’m looking for the targets on the JPY to be hit …that will tell us a lot about where we are.
