• Biases remain the same for U.S stocks. European stocks have been on an absolute elevator up the past few weeks. Really impressive strength. The Nikkei also playing some catch up which is nice to see. All these factors certainly lean us more bullish than bearish for the resolve of U.S stocks.
  • Some strength returning to the U.S dollar but nothing to get excited about yet. U.S bonds are mean reverting from lows last week and giving shorts another chance at an entry.
  • Nothing really going on in commodities except for crude oil. Precious metals still a choppy mess and best to be avoided at the moment.


Market: S&P500

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Bullish

We follow our system and the odds tell us that this was a valid breakdown in stocks on Tuesday. However, the momentum at the end of the week doesn’t feel bearish. We certainly thought the downside would be composed of a quick sell off to make new lows but we did not see that. Our bias remains bearish for now but should the market really get going to the upside you are looking at a massive weekly bull flag unfolding to the upside.


Market: CAC

Reason for observation: Monthly bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Have to finally flip back to bullish in the short-term on European indexes, this is way too much strength to be ignored. The CAC is almost already back at the previous highs made in the beginning of 2018 before the sell off.


Market: U.S Dollar

Reason for observation: Failure of short-term bearish patterns

Short-term bias: Neutral

Long-term bias: Bearish

This was exactly the move we were looking for to guide us away from additional short plays in the U.S dollar. Not getting bullish at all, just avoiding the short side for the time being and placing focus elsewhere.


Market: AUDUSD

Reason for observation: Imbalance move to the downside

Short-term bias: Bearish

Long-term bias: Neutral

Messy time-frames but this down-thrust on the daily should provide nice short setups on any rally.


Market: Silver

Reason for observation: No edge

Short-term bias: Neutral

Long-term bias: Neutral

Why we really like to wait for confirmation. A lot of talk about a breakout play in Silver last week, the move was immediately rejected back to the downside. Look at the weekly and monthly chart, hanging out near the middle Bollinger band, AKA no edge present at this time.


Market: Crude oil

Reason for observation: Daily bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Nice little high and tight pullback setup in crude. Longs are still very much valid and new entries may be made on another move to the upside.