E SPX, Gold, Oil And G6 Targets For The Week Of January 28th

Before revealing the price targets for next week, first we’ll discuss the market breadth readings since the end of December. The cumulative down thrust number on December 24 by far exceeded the highest negative thrust readings for the last 30 years. Such large negative thrust numbers have been associated with significant low turning points in the past. The importance of the market turn at the end of December was further highlighted by the large up thrust market breadth numbers on January 2 and 11, which normally appear at the beginning or in the middle of strong upswings:

Supported by improving market breadth, the SPX sliced through two key resistance zones and advanced 13% since the December 2018 low. That’s an annualized rate of over 300%, which is obviously unsustainable as price is clearly running well ahead of time. The weekly hanging man candle is the first warning this month that bullish momentum may be slowing down. However, for a bearish confirmation a close below 2612 is needed.

Current signals*: Daily Long, Weekly Long

For Weekly Buy/Sell pivots check the TV page which gets updated on Monday.

The projected trading range for next week for SPX is 2550-2750.

Oil traded flat for the week but remains in an uptrend.

Current signals: Daily Long, Weekly Long.

The projected trading range for Oil for next week is 50 – 56:

Gold is showing signs that the price consolidation phase following the November run-up may be over. A close above 1300 is needed to mark the beginning of a new upswing.

Current signals: Daily Long, Weekly Long

The projected trading range for Gold for next week remains unchanged: 1270 – 1310:

The Dollar index was strong most of the week until it sold off on Friday. This is reflected in the G6 charts below.

USDCHF came close to parity on several occasions during the first half of the week, but sold off afterwards. Our key long/short pivot remains at 1.00.

The projected trading range for USDCHF for next week is 0.984 – 1.0029:

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