I am writing this quick post to update my video from Sunday given some critical price action on Monday and Tuesday.
STOCKS:
Critical after hours session going on right now in the futures markets. We are approaching some very significant support levels in the equity futures markets. If these levels hold (particularly 1290 for /ES (e-mini 500)) we should see a decent rally in the next day or so.
COMMODITIES:
gold has already started back upward and oil is looking quite ready to pop back up. USO would be a superb low risk play with a stop below the recent low at 37.72.
BONDS:
have staged an incredible rally since end of April, however, as of monday's close, the rally has officially been broken. I think we will see bonds slide again (contrary to my video on sunday since critical break of support occurred on monday)
DOLLAR:
still in an uptrend, but started to flirt with some key resistance levels above
SUMMARY:
I expect equities and commodities to move back up in the next day or so and bonds and dollar to slide once again.
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