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Given this lack of synchronicity between the broader NYAD line and its derivatives, along with the breadth and volume McClellan Oscillators and their respected McClellan Summation Indexes, the expectation for the next week or two will be for a high amount of chop in prices until one side is able to take better control of the overall action.
It was indeed a week of "a high amount of chop in prices" as we saw the markets first move deeper into "oversold" territory on Monday and Tuesday, steady itself on Wednesday, and then promptly skyrocketed higher off of various trendline support levels that can be seen on our usual chart array. The Small Cap Index (SML) closed at new all time highs in this end of the week effort, while NASDAQ Composite and the NASDAQ 100 were the only major market indices that closed lower week over week. Now that we have brought back some trading balance between the buyers and sellers, we look to next weeks action to initially fill the vacuum created by moving too far, too fast, without the proper technical internals to support the rebound as the market goes about its business of attempting to construct its next internal platform from where prices will be able to rally later on. Regrettably for the gold bugs, the Precious Metals and XAU advance/decline lines continued to plow lower into negative territory and this now suggests that the June crash lows in both gold and silver will be taken out in the not too distant future. Because of this, it continues to be highly recommended that any long positions in this asset class be put on hold as long as the sellers remain fully in control of the action. Have a great week of trading! US Equity Markets : US Interest Rates : US Real Estate : Precious Metals: Australia: England: Germany: __________________ Dave's LinkedIn Profile Technical Watch Twitter Page Technical Watch Facebook Page "As for it being different this time, it is different every time. The question is in what way, and to what extent" - Tom McClellan "An economist is someone who sees something happen, and then wonders if it would work in theory" - Ronald Reagan "What we see depends mainly on what we look for" - John Lubbock "The eye sees only what the mind is ready to comprehend" - Henri Bergson “Answers are easy; it’s asking the right questions which is hard” - Dr. Who - 1977 "You know the very powerful and the very stupid have one thing in common - they don't alter their views to fit the facts, they alter the facts to fit their views (which can be uncomfortable if you happen to be one of the facts that needs altering)" - Dr. Who - 1977