Good Words From Europe — Markets Bounce Up
Traveling from California to Georgia today—there’s no place like home!
Short Term Trend (hourly) – Bullish
Intermediate Term Trend (daily) – Still bearish, but the good news out of Europe has the potential to reduce fear and bring money back into risk assets—equities. Market internals have begun to turn bullish, but are still below the zero lines, with an up day today (like the pre-market futures are anticipating) we could see our market strength indicator begin to turn bullish once again. The Bullish Divergence can be seen on multiple charts from 8/08, 8/10, 8/19 and 8/20.
Slightly Longer Term Trend—the bounce in the market today provided the beginning formation of a weekly higher low candle as compared to the week of 8/08. If this rally can sustain itself, we may have beginning of a weekly double bottom pattern.
Market Strength Indicator—Bearish on four indicators with one beginning to show the signs of a turn around.
Intermarket Analysis—The TNX moved higher and the VIX dropped confirming the move—the EUR/USD held steady, but looks like today (Tuesday) the EUR will move higher and the US Dollar will drop, confirming the leading indicators we mentioned in yesterday’s report.
Good Trading,
Dave
themoneybuzz 