S&P 500: Mind The Gap

SPX Monitoring purposes: Sold 6/21/21 at 4224.70= gain 1.40%; Long SPX on 6/18/21 at 4166.45 (SPX).           

Monitoring purposes GOLD: Long GDX on 10/9/20 at 40.78 (GLD, GDX). 

Long Term SPX monitor purposes: sold long SPX on 1/15/21 at 3768.25= gain 10.80%; Long SPX on 10/26/20 at 3400.97.

Tuesday we said, “The SPX was down four days in a row going into Friday and the statistics show the market will be lower within five days 67% of the time.  This condition suggests Friday’s low will at least be tested in the next five days.”  Added to that, today’s volume was lighter than yesterday’s volume which shows upside energy is weakening.  Today’s high tested last Wednesday's high on lighter volume which suggests resistance. SPY gapped up yesterday and that gap remains open and market may attempt to test that gap in the coming days.  Bigger trend is up but could see short term pull back before market heads higher.  Back to neutral for now (SPY).  Sold 6/21/21 at 4224.70= gain 1.40: Long SPX on 6/18/21 at 4166.45.

The top window is the NYSE McClellan Summation index. Large declines in the NYSE can occur when the Summation index falls below “0”.  The chart above goes back to mid 2014.  We pointed out with red arrows the times when the NYSE McClellan Summation index fell below “0”.   Readings above +500 point to a relative strong market; current reading is +744.  Can do some “backing and filling” short term but eventually market will move higher, most likely in July.

Tuesday we showed the monthly HUI which is in an uptrend. The above is the week XAU (going back to 1984), without a price chart but with moving averages of 12, 21, 34, 55. 89, 144, and 300 shown (XAU).  The blue arrows show when these moving averages crossed to the up side and the red arrows show when these moving averages crossed to the downside.  A bullish crossover occurred in January 2020 and remains in force.  Momentum rules all indicators and these moving averages are momentum indicators. Long GDX 10/9/20 at 40.78).

Disclaimer: Signals are provided as general information only and are not investment recommendations. You are responsible for your own investment decisions. Past performance does not guarantee future ...

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