Weekly Charts Broken

Mario Draghi reported the ECB (European Central Bank) would continue to keep printing and maybe induce even more quantitative easening. S&P futures shot up to 1968. The market was roaring right out the gate up 173 and by mid-afternoon the market started to fade. At one point the market was down on the day before closing up 23 points. The NASDAQ ended the day down. Last Friday my proprietary trend algorithm on my weekly charts went negative for the first time since October 31st of 2014. We caught that long uptrend and now the algorithm weekly went negative and it is very unlikely that the algorithm will go negative and then positive on the weekly charts. We are seeing a lot of volatility and choppiness. Tomorrow we have the August non-farm payroll number. I am 75%-80% sure the lows are in for the year. We got down to 15979 on Monday. There are still gaps to be filled and I expect the market to make a higher low in the 15500-15900 range. After making a higher low we should be ok into the 4th quarter.

Oil was up 2 dollars and then was unchanged. The low was around 43 yesterday. I stated I thought the short term bottom on oil was around 38 and I am looking for a pullback into the 39-43 range. I do believe oil will make a higher low and there will be some good opportunities in the oil stocks such as SN (Sanchez Energy). I do not see the patterns yet on the daily charts.

I am not a believer in gold. Gold got up to around 1147. I stated I would be out of gold at the 1150-1160 level. ABX (Barrick Gold) made a new low despite gold being up. I do not see any light at the end of the tunnel for gold or gold stocks. I do not believe the Federal Reserve will increase interest rates in September.

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