E Targets For The Week Of August 31st

Last week we noted that market breadth is signaling a transition to a new sideways/up phase. The SPX started the week with a breakout above the February ATH and never looked back. It reached our upside weekly target by Wednesday and continued advancing until it reached the monthly upside target. Both the daily and weekly trading signals remain long*. A weekly reversal will be triggered with a break below 3350:

Market breadth reached overbought levels, which signals that the stage is set for the next sideways/down phase.

In another interesting development, the SPX is currently showing positive correlation with VIX. This is a relatively rare event and could be attributed to DJIA rebalancing prompted by AAPL’s stock split. Nevertheless, it is something to keep in mind since similar events in the past have been followed by pull-backs in the major indices. The three companies joining the DJIA (CRM, AMGN and HON) have already registered substantial gains this week in anticipation of their inclusion into the index. AAPL alone has gained 17% in August, ahead of its stock split, which took place after the close of trading Friday.

The Dollar index remains in a downtrend, which propelled GBP towards its long-term resistance zone just below 1.35, and helped EUR close at the upside weekly target:

For  10Y Treasury, GOLD, OIL, BTC and G5 weekly targets and Buy/Sell pivots, check the TV page which gets updated on Monday.

*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

For intraday charts and update follow us on TradingView

 

 

Disclaimer: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money ...

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