Most of the charts I post are weekly charts that are slow to change. If you've been a regular reader, I know these charts are starting to look repetitive. Just keep in mind that weekly charts remove the daily noise and show us the big trend. This big picture and ample patience is ultimately what makes us the real profit.
"The big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend…The market does not beat [traders]. They beat themselves, because though they have brains they cannot sit tight… After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting." - Jesse Livermore
SPX and COMPQ (Weekly) are facing major long-term resistance with bearish RSI divergence...
... while TZA (3x Small-Caps Bear ETF) and VIX (Weekly) are at key support with bullish RSI divergences.
EUR (Weekly) is currently on 2yr price support, 4-yr RSI support and 6-year MACD support. I'm watching for these levels to hold.
EFA:SPY (Our good friend and arch-nemesis of the US dollar) is on RSI support. A breakout from its 5-year downtrend will be a huge positive for commodities and negative for the dollar.
USD (Weekly) is still stuck in a wedge. A weekly close below 79.50 (less than a 1% price drop) would decisively break 2-year support. Strength in either the EUR, YEN, EFA:SPY can cause this to happen.
After bottoming on 14-year support in early June, Gold rallied through a 2-yr downtrend. Today's big $30 drop in gold has it retesting that former downtrend as new support.
CDNX (Weekly) has broken out of 10-year resistance and is now testing it as new support. Watch for it to hold
XME (Weekly) broke out of a 2-year inverse H&S base and is now testing it as new support.
REMX is rallying after retesting a 3yr downtrend breakout last week
Nat. Gas and USO (Weekly) are both retesting major support. Watch for these levels to hold
JJC (Copper) and JJU (Aluminum) continue to hold their 3-year wedge breakout that I posted previously.
DBA (Weekly) has now retraced 61.8% of the +25% gain it made earlier this year. Not only is it on an important Fibonacci level, its also on RSI support.
CCI:SPX (Weekly) ratio is retesting 3yr falling wedge breakout
EEM:SPY (Daily) has been coiling inside a 4-month wedge that's nearing completion. Recall that this ratio has a strong positive correlation with GDX.
SSEC (Weekly): Don't lose sight of this massive 8-year wedge that is nearing completion!
- US Equities are at key long-term resistance
- Euro, Commodities and the VIX are all sitting on key support levels
- Important wedge resolutions coming up in the Yen and Emerging Markets
That's all for now. Take care