February provided a good example of what happens when investors choose to ignore the implications of COVID-19 for the economy, and then suddenly wake up to reality. We find ourselves in a similar situation, when news of a second wave of COVID-19 cases is dominating the headlines, while the major indices keep hovering above key support levels. The SPX found support near a confluence of bullish trendlines and harmonic angles, and is still trading within the Neutral zone:
However, the weekly signal* turned bearish for the first time in two months, suggesting that odds favor shorting rallies:
Daily market breadth has dipped into oversold levels, and the weekly readings remain in decline (black line):
GOLD keeps challenging the ’11 and 12’ highs, and prints higher targets for next week:
*Please note that the signals are provided for informational purposes only. They are in effect as of the close on Friday and may change as soon as the markets re-open.
Charts, signals, targets and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8
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