Tuesday, July 24, 2012

Stocks Commodities Forecast is Looking Bleak



This week could be a huge one for stocks and commodities. This morning the dollar index is taking another run at our weekly chart resistance level. If it can break out and start to rally this week then a possible 4-6 week sell off in stocks and commodities may be just starting.

Watch the morning video or at least the last 4 minutes where I cover the SP500 intraday and daily chart which shows the main cycles and what we should be expecting within the coming days and weeks.



Pre- Market Analysis Points:

Dollar index is making new highs this morning and if it can hold up into the close today then I would expect it to keep running higher for a few weeks.

Oils has pulled back 5% from its high last Thursday and is now testing support and starting to bounce.

Natural gas is holding up well after Friday’s strong rally to new highs. It may be forming a bearish pattern with the three sharp surges to new highs pattern which I explain in the video.

Gold and silver trader trading down 1+% and are likely to find a little support today as they test support levels. They are at risk of a major breakdown but currently they are still holding up.

Bonds are reaching new highs this morning but looking ready for a 1-3 day pause. They are a little overbought.

SP500 charts have been the most interesting the past couple months which is why I keep focusing on it.

Click the link below to review the Commodity Code auto-trade system.