If a couple of things fall into to place, I see big danger in the market. The DJIA broke the weekly low set in February of 9835.09, the UTIL broke its February low of 361.50, and the SPX broke its February low as did the Light Crude Index. So far we have NASDAQ holding above its February low of 2100.17 and the TRAN showing divergence by staying above its February low of 3742.01.
I see weakness in the DJIA, a head and shoulders top and a neckline at 9757.55 and a target if broken down around 8,000 to 8500. So watch these levels DJIA – 9757.55, TRAN – 3983.18, then its February low, and NASDAQ at 2139.46, followed by its February low. I think those levels will be broken and it won’t pay to be long this summer.
Got Gold?
I still hold my prediction of SPX at 1200 before this whole thing implodes. We need to fill that gap up above before we can break all the long trend lines below. I’m holding out to short at the level when we’ll see Wave 1 finally develop. This is similar to the same setup we had in 2007.
China unleashes global rally by unchaining yuan
Ah, that’s why the futures are up big.
S&P 500 1,126.40 16.20