• U.S markets coming under some stress. While the Nasdaq and Russell 2000 do not look bad at all, the downside potential in the S&P500 and Dow Jones is real. This is probably the most bearish feeling we have had on U.S stocks in a very long time. It feels as if a small sell off could turn into a massive downside shock. Caution should certainly be warranted on heavy long exposure at the moment.
  • Dollar looks tired and due for some mean reversion. USDCAD potential daily bull flag forming. Potential breakout in USDJPY discussed below.
  • Future shorts in Gold and longs in crude oil seems like the theme in commodities.


Market: Nasdaq

Reason for observation: Potential daily bull flag

Short-term bias: Neutral

Long-term bias: Bullish

Was this too much downside too quickly to qualify as a valid pullback? Time will tell. But the chart setup in the Nasdaq certainly is a different picture compared to the Dow Jones.


Market: Dow Jones

Reason for observation: Return to weekly support zone

Short-term bias: Neutral

Long-term bias: Bullish

Every rally faded back to the downside, buyers really do not seem to be in any sort of control. Probably the most susceptible U.S index should the general market take a dive lower.


Market: U.S Dollar

Reason for observation: Failure at highs

Short-term bias: Bullish

Long-term bias: Bullish

Still leaning bullish but this failure at highs seems to be a sign of short term exhaustion to the upside. Some mean reversion to the downside would be expected after the nice rally beginning in April.


Market: USDJPY

Reason for observation: Potential daily breakout

Short-term bias: Bullish

Long-term bias: Neutral

Pressing a potential resistance zone on the daily chart with volatility contraction on the weekly chart is probably bullish. A quiet market for quite some time could show new life with a break above these recent highs.


Market: Gold

Reason for observation: Rolling over to downside on weekly and daily charts

Short-term bias: Bearish

Long-term bias: Neutral

A pullback on the daily is likely to setup attractive shorting opportunities.


Market: Crude oil

Reason for observation: New highs

Short-term bias: Bullish

Long-term bias: Bullish

Unbelievable strength in crude oil. We are now back in a position to look for long trades on any daily pullback.