Wednesday Update – SPX, RUT, Oil and USD

The mid week update and appears we have healthy divergence and a turn in the indexes.

SPX – Cash market has tested the gap lower in futures on Sunday with a healthy divergence. Expecting a decision higher in the 2100-2105 area after a backtest.

RUT – Same pattern playing out – structure more clean and easier to see. 5 down structure with divergence calls for higher prices. Watch for a backtest in the 1233-35 area.

CL – Oil broke our support level and now has put in a divergence. We may see one more test lower to the 49.20 area before seeing higher prices. Also can proceed higher and break previous degree W4 and continue higher.

DX – Going to be a regular on the weekly updates – many futures are USD sensitive and the USD helps orient me to other turns in metals and commodities. USD currently in a triangle and likely a turn tomorrow lower into wave D.

Chat Chat for subscribers?Wednesday morniing?at 7:00am EST. Next video update Friday morning. Good luck to all.

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17 thoughts on “Wednesday Update – SPX, RUT, Oil and USD”

  1. Chart chat subscriptions will be offered to all members of this site for free in a few weeks. More info to come. Our plan is to record something live on Sunday before the open which you can attend and also then post it here for others who cannot attend. Keep in mind they are a weekly one hour webinar focused on Indexes, Currencies, Bonds, Energies, and Commodities so we cover a wide range.

  2. Chart chat subscriptions will be offered to all members of this site for free in a few weeks. More info to come. Our plan is to record something live on Sunday before the open which you can attend and also then post it here for others who cannot attend. Keep in mind they are a weekly one hour webinar focused on Indexes, Currencies, Bonds, Energies, and Commodities so we cover a wide range.

  3. Thanks for the video, very good work. As I write the SPX is ~2054. A significant break below 2054-59 coming? If so, do you think we could test yesterday’s lows (or lower) before your bounce? Should be an interesting afternoon!

    1. 9% up volume day but not a trend day today so far – SPX 52 possible here but 44’s should hold imo – bounce still coming – with only 9% up volume we should be trendling lower – bears have the advantage and are not pressing it. – who owns the close today important

    2. I originally posted the above late this morning and re-posted. The FED minutes are out and markets holding the lows. Several “hacks” today, including NYSE. Will be interesting to see market action after they re-open later. Time to buy cyber-security stocks?

      1. Thanks! Appreciate your inter-day replies. Looks like we’re heading in that direction. Market doesn’t seem to like the Fed minutes. And then there’s China, NYSE halt, Greece…

        1. retrace looks to be wave C of triangle formation, deeper than expected – break higher above es 53’s confirms same – if seen likely wave D below top of range the wave E lower – on Emini ES

          1. This is turning out to be a wild week. Volatility way up. We may see SPX 2028-2038 this week after all. I think those were support levels in Monday’s video.

  4. Morning Update – mentioned yesterday in a post that we are in a triangle formation – playing out – wave D in progress this morning and expecting it to end in the ES 65 area but can go into the low 70’s. Likely the next legg down will define the rest of the week, it must find support before 47’s, failure to find support, break lows and we open 34’s

      1. Nice call for today! Once the SPX hit ~2074 this morning it seemed to find support and end around low 2050’s. Question for me is will a downtrend to below 2047’s develop tomorrow, or will the market be in a holding pattern until next week, after the latest Gexit news is out on Sunday (supposedly the make/break deadline, again)?

    1. Great call for the open. SPX hit ~2074 in opening minutes. Interesting to see if there is a strong reversal in the first hour or so. Otherwise will wait for the next leg down later today…hopefully. Good short opp. this morning. Thanks for the morning update!

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