• U.S stocks look ready to take relative strength once again. Bearish patterns failed in U.S indexes and many indexes banged it into the close on Friday. This is extremely bullish. Nothing else really new to note in other global indexes.
  • Also no real bias changes in FX. More of the same from last week.
  • Once again clearest setups in commodties is bear flag in Gold and bull flag in crude oil.


Market: S&P500

Reason for observation: Failure of bearish patterns

Short-term bias: Bullish

Long-term bias: Bullish

Our biases are flexible and this market shows why that is a good thing. We usually do not flip flop our analysis but failure of that bear flag was a huge tell for future price action. This market feels extremely bullish once again. Do not short strength at this time.


Market: Emerging Markets

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bullish

This mean reversion in emerging market stocks is just setting up another downthrust. However, the longer term monthly bull flag is still in play.


Market: AUDUSD

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bearish

Even though this pullback is on the upper range, the downside potential is there should the market fake out the bulls and roll over.


Market: USDCAD

Reason for observation: Daily bull flag setup

Short-term bias: Bullish

Long-term bias: Neutral

Bulls really want to get moving back North soon if this daily bull flag has any chance of triggering long entries.


Market: Gold

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Neutral

Another shorting opportunity setting up in Gold. Weekly trend is starting to bend lower.


Market: Crude oil

Reason for observation: Daily bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Nice high and tight pullback giving bulls a fresh shot at capturing the upside potential in crude oil.