The S&P 500 has held up well since the July 19 energy peak, and really just consolidated into the lesser peak on August 8. But the next peak is not until early November, and in the meantime there is a very negative trough coming up on September 8 to 10. The period leading into this trough starts on Monday, and a break in the S&P below 1680 and then 1670 will be the sign that a big drop has started.
We saw the expected pause in the precious metals rally on Friday. If Thursday’s big move up was a fake, gold would have fallen back on Friday. The fractal dimension on the 150-minute, short-term chart should get back over 55 in Sunday night futures trading, so we could see a strong Monday opening that squeezes the shorts and leaves the underinvested chasing the upturn.
Don’t forget the Perseid meteor shower on Saturday and Sunday night!Print This Post