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fib_1618

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So with the BETS moving to its lowest level since June 8, 2012 with a reading of -45, the equity markets remain under intermediate term selling pressure, but at the same time, are "oversold" enough now to where some technical stability is likely to be seen as we move into next week's OPEX period.

With the reports of Greece coming to terms with the European community on Monday, the major market indices applauded the news by moving higher for the week by an average of 1.76%, with the NASDAQ Composite Index leading the way with a 4.25% gain and closing at new all time highs, while the Mid Caps and Small Caps showed only a slight positive change by an average of .42%. It should also be duly noted that the NASDAQ 100 index is now only 43.14 points away from joining the bull party in record territory on a closing basis and 154.76 points on an intraday basis.

Looking at the breadth charts array for this week and we see that the NYSE Composite, NYSE Specialty and NYSE Bond CEF advance/decline lines all finished the week above their declining tops lines that have been controlling their respected patterns since their spring highs, while the NYSE Preferred advance/decline line closed back at new all time highs at Friday's close. As positive as this was, however, the NYSE Common Only and NYSE REIT advance/decline lines still remain below their declining trendlines providing us with a cautionary signal that much of the advance was more reflexive from a deeply "oversold" condition as it might be that of an actual tradable bottom. All in all though, it was a good week for the internals as part of re-bar being laid in the hopes of constructing a strong enough foundation from where prices will eventually be able to build on at some point in the near future.

Over in the precious metals complex, we finally saw technical breakdowns in the price of gold (-2.64% weekly) and silver (-4.88% weekly) on Friday with both closing at levels not seen over 5 years. With this decline, both the Precious Metals and XAU advance/decline lines continued to accelerate to the downside while finishing up the week again at new all time lows. With the complex now deeply "oversold", the expectation for next week is for some sort relief rally to take place to allow prices to snapback to their previous horizontal lows before a resumption is seen to the downside. For the price of gold, the long standing downside price target from October 31st of last year remains at $1100, with the ultimate goal of challenging the $985 level before we're likely to see a tradable bottom.

Turning our attention to the overseas markets, and we see that the Aussie, CAC and FTSE advance/decline lines all finished back above their declining tops lines from their May highs, while the BSE advance/decline line continued to strengthened and now resides just 2084 net advancing issues from moving back into new all time high territory. If these global liquidity pools can continue to rise over the next couple of weeks, this would be quite beneficial for the outlook of the emerging markets of the world, and with it, will help to maintain the current longer term uptrends in the equity markets here in the United States.

So it was a good character week for the bulls as many of the breadth and volume McClellan Oscillators moved to multi month highs, but the lack of total commitment by the Mid Caps and Small Caps suggest that some backing and filling will be needed before a more robust advance above the price highs of May and June are seen. Even the BETS is giving a cautionary signal as it came in with a -25 reading on Friday indicating that overall market breadth in the US and Canada remains negative at this time. Because of this, let's expect the choppy and volatile price action of the last couple of weeks to continue as market goes about the effort of backing and filling a proper foundation from where prices will be able to not only rally, but will also be able to maintain an advancing price structure without the fear of collapse. 

Have a great trading week!

US Equity Markets:

[breadthspx071715]


[breadthdjia071715]

[breadthspec071715]

[breadthpre071715]

US Interest Rates:

[breadthtnx071715]

US Real Estate:

[breadthreit071715]

Precious Metals:

[breadthpm071715]

[breadthxau071715]

Australia:

[breadthaus071715]

England:

[breadthftse071715]

France:

[breadthcac071715]

Germany:

[breadthdax071715]

India:

[breadthbse071715]

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