• U.S stocks all looking ready to move back to the upside. The S&P500 and Dow look poised to make fresh all time highs. Nothing really new in Europe or Asia. Emerging markets may be heading lower in the near term, that chart is shown below.
  • U.S dollar possibly about to explode higher. Damage ready to be done to the euro and pound among other setups. U.S bonds are setting up a bearish play that could have very attractive downside potential, that is discussed below.
  • It has been a relative commodity bloodbath the past few months, many are showing attractive short plays. Our favorites are in gold and crude oil, more on that below.


Market: S&P500

Reason for observation: Daily bull flag trigger

Short-term bias: Bullish

Long-term bias: Bullish

S&P500 set for another upthrust coming out of this multi-week consolidation. Should give a push above previous all time highs should this pattern get moving north.


Market: Emerging Markets

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bullish

Bears back in control in emerging markets. This daily and weekly bear flag setup does not bode well for short-term bullish price action. The trendlines drawn on the daily are a good game plan for future price action. A move below the lower line would validate bearish trades, while a move above the upper line would cancel any bearish setups (for the time being).


Market: U.S Dollar

Reason for observation: Weekly bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Pushing highs on the daily, this breakout in the U.S dollar could persist for a few months based upon a measured move of the weekly bull flag.


Market: 20 yr U.S tsy

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bearish

Any rally in bonds will tilt the probabilities toward another move lower. This small daily bear flag could be an early invitation to a much larger sell off in U.S bonds.


Market: Gold

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Neutral

Momentum looks to be running out to the downside on the daily, however, shorts are still justified for now. Any large move up in gold should trigger short covering and lead to possibly out-sized mean reversion. Again, any rally on the weekly chart will setup more short plays.


Market: Crude oil

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bullish

Still a nice little short play in crude oil. The measured move on the daily may provide some hints to the expected downside. Selling should happen relatively quick, one or two bars, and any shorts should hold a tight leash as higher time-frames are still very much bullish.