Weekend May 22, 2016
We have a clear five wave pattern to the upside which is replicated in the various indexes themselves. This suggests the market found support at the previous fourth wave formed in early April. In that case we are probably in for at least a re test of the previous highs. The market finally had a positive week for the first time in four weeks.
Weekly Dow Diamonds
The PAR SAR blue dots make it clear this will be a decisive week for the market. A break below 172.18 means lower prices while a move up surely means
higher prices.
Summation Index
This indicator is still headed down But a strong day Monday could begin a bottoming effort.
Interest rates still seem indecisive.
Crude Oil and the Dollar
All the MAs have turned up suggesting the low is in place for oil. The US Dollar shown at top is rising. And we have
previous resistance at $50. I am looking for a pullback here.
Natural Gas
Looks like natural gas will follow crude oil with an important low.The MAs are converging which is usually the sign of a change in trend.
Bottom Line
We will update Monday on the trend in stocks. We reported the huge short position Soros has, but have no way of knowing if he has hedged that.
Crude oil needs a rest and natural gas is trying for a break out.
Social Mood
For some reason I am not finding the latest update on Pop Trends Price Culture
dennislelam@gmail.com
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