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Buyers Tow the Line – Traders Still Nervous – Aug 7, 2019

MARKET COMMENTARY

GOLD hits 1500. That’s big – and it appears there is more ahead -even as technical divergence exists. Markets are holding steady across the board as traders dip back in with a little less vigor. Macro voices are getting certainly much louder and the voices are very negative. That said, markets are still holding higher lows on weekly and broad daily charts as major players are still chasing yield.

PRICE ACTION
The e-mini S&P held its bounce after a deep fade into 2770. We are beginning the stairstep back up to 2912. This level is very important, breaching it will really bring buyers back in full force. The mini Nasdaq is resisting 7517 and the recovery of 7840 will give us a relative reversal and send us back to bullish motion. The mini DOW traders can’t seem to get us over 26080 and until we do, that remains a warning signal. Fast moves are the order of the day. Watch your edges.
COMMODITY WATCH
Gold is much higher and still under technical divergence near 1505. Trading here should be with smaller size as the smaller pullback could break with the technical divergence. Currency moves continue at the forefront of the markets this week and over the coming months. The USD index fell like a stone near its high into 99 and continues to drift lower. WTI has fallen out of its channel -EIA today – and very likely to bounce back into the base of the range near 54.5. Failing to recover 54 would be quite bearish.
INTRADAY RECAP
Bearish slant as we bounce off deep support but stalling at old support that is now resistance. The levels and range between 2881 to 2912 is the watch data for the e-mini S&P resistance with 2867-2854 as support. The mini Nasdaq is within the range between 7617 resistance and 7472 support.  Continue to be careful here on the edges of your charts as we could accelerate out and continue if traders get too heavy on the edges, in which case, you’ll have to reverse your position.
OVERALL WIDE ANGLE
Divergent action still sits below the movement of price on both sides of the trades – long and short – but traders are still looking at deep support edges to bounce.  They are currently failing in this endeavor as we search for stabilizing support below.
METASTOCK SWING SHORT STOPS OUT FINALLY AT 2881. BUT THE ENVIRONMENT IS STILL A SHORTING ONE WITH A NEW ENTRY AT 2912 WITH A 10 POINT STOP
BIG TARGETS HIT IN THE METASTOCK SHORT – COVERED MAJORITY BUT MINIMAL EXPOSURE SHORT NOW AS THE CHARTS TRY TO RECOVER. VALUE BUYERS WILL SHOW UP – HOW STRONG THEY ARE REMAINS TO BE SEEN

   Here’s a link to the METASTOCK software

SHORT TERM LONG INTO RESISTANCE – BIGGER PICTURE STILL SHORT SO BOUNCES INTO RESISTANCE

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LINK FOR THE WEEK BEGINNING AUGUST 5, 2019 – 

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