The SP futures 30-minute M/A cracked. I'm still holding short stock mutual funds. Analyzing the short-term timing component, the 8-day lead may still exist. The cycle low in late May looked on the money, but the last 2 cycles fit best with an 8-day lead. If the current cycle has an 8-day lead then Monday would mark the low. This fits best with the technical composite buy signal for a multi-day rally.
The dollar is inversely related to the stock market. DX futures came up to an important hourly M/A and I sold. The envelope is .5%, which projects to 74.87. The high on the rally is 74.81. The dollar retracing would provide support for the stock market.
Steve,
ReplyDeleteCould you explain in more detail what constitutes
a "technical composite buy signal", in the face of the decline that I1 expects into August. I'm trying to understand. Thanks!
Mark