Although the S&P 500 futures are up five points in overnight trading as I write, I’m expecting a consolidation week to build up the energy for the next leg up. That could mean sideways action just under the highs, but it is more likely to mean a drop back to the 2116 breakout level to flush out some of the hot money and keep the bears from realizing they’ve made a mistake. The subsequent rally is likely to last into September.
Gold has calmed down with the news that the coup in Turkey failed. I still think it has a date with the retracement level at $1,302. The fractal energy will then support a recovery to a second “bonk” against $1,400. The usual pattern is three bonks and then a breakout.Print This Post