Some cracks in equities last week, but there will be no technical damage as long as the S&P 500 (SPX) meanders above the 2420 – 2425 level. One of the cracks was demonstrated by the daily Nasdaq Powershares QQQ (QQQ). It produced a large bearish engulfing pattern last Thursday, in part attributable to the weekly price exhaustion signals.
The same can be said of the Russell 2000 (RUT). However, if the RUT begins to show leadership higher, it could really take off as the weekly RUT chart is showing a long volatility squeeze that has been building up for weeks.
A note for commodity watchers, The monthly chart for copper futures (HG) recorded a TD Buy Setup @ 9 on February 2016 above the 1.506 TDST Support level, and for the close of this month, copper reached the first hurdle by surpassing the 2.767 TDST Resistance level. This will be construed as bullish. Should it trade below the TDST level, further analysis is needed.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Neutral until further notice
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if weekly SPX closes below 2425.18 or Bullish if the close is above 2472.54 on Friday, August 4, 2017
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if monthly SPX closes below 2362.72 on Monday, July 31, 2017