• Global stocks relatively quiet and no new biases to report on.
  • An end of week drop in the dollar has bears calling for a reversal but a lot more has to be done to change our short-term bias. More on that below.
  • Breakdown underway in precious metals, locking in some solid gains. Gold and silver are discussed at the end of the report.


Market: S&P500

Reason for observation: Pressing highs

Short-term bias: Bullish

Long-term bias: Bullish

These small range bars near the highs of the most recent rally is bullish. “Digestion” of gains is constructive for future price action.


Market: Russell 2000

Reason for observation: Daily bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Higher lows into a potential breakout zone is extremely bullish for small caps stocks. Aggressive traders may front run the breakout, ideally better to wait for the confirmation of the breakout.


Market: U.S Dollar

Reason for observation: Rejection at highs

Short-term bias: Bullish

Long-term bias: Neutral

Some failure near the upper range of this consolidation in the U.S dollar. However, it will take a lot more downside to invalidate the potential weekly bull flag forming.


Market: 20 yr U.S tsy

Reason for observation: Failure of short-term bullish structure

Short-term bias: Neutral

Long-term bias: Bearish

Nothing clear in the near term, but the longer-term bearish overhang in U.S bonds seems to be showing its face once again.


Market: Gold

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Neutral

Our short play hit targets last week and was stopped out on Friday. Additional shorts seem as if they will be presented in the near-term, so a good market to keep an eye on.


Market: Silver

Reason for observation: Breakdown below potential support

Short-term bias: Bearish

Long-term bias: Neutral

New lows on the daily for Silver. Also should present solid shorting opportunities with any rallies.