Watching paint dry. That is probably the best way to describe today’s action. Up a little and then down a little and by the end of the day about dead even.
I am thinking that the next 2 weeks after this week ends are going to be flat to sideways. I just do not see any major market moves happening as far as the indices are concerned.
There still exists this shorter term possible bearish divergence in the SP500, but so far that has not led to any significant price destruction and the market may once again evade this bearish divergence if the SP500 can hold above 1014 the next couple of weeks.
There are three days left in the month of August and so the market has to make a decision by Monday how the August monthly price bar will look. If it closes near where we are now then it could bode well for September. But if by some miracle the SP500 starts to break down badly the next 3 days and slices down through 1014 very fast then it might be saying the first week of September could be hard down.
CBL looked good today but the volume was very light which is no surprise. I want to see CBL be able to get above 8.80 before I become convinced it is ready for breakout mode.
Citibank could pull back all the way to 4.00 and still be bullish. I am thinking there is another low risk entry point coming in Citibank in a week or two.
HBAN is still compressing into a decision point but so far no green or red light on it yet. HBAN could just as easily break down versus break up. I am watching it closely but I am not going to have any bearish or bullish bias on it right now.
Spot Gold and the GLD ETF did absolutely nothing today. Early on in the day the double inside day I had talked about earlier turned into a triple inside day today. So gold is still coiled up extremely tight and I continue to believe that a huge move is coming. The best shot for the big move to happen is the first 2 weeks of September.
ANDS is still drifting sideways and has not really moved to a point where it says it wants to make a big move. It is coming close to trendline support but still has a bit of work to do.
So if it is perfect world then CBL will get a breakout started later this week and make a nice move to 10 to 12 range. Citibank will pull back in the meantime to 4 and change and then get a resumed move up to 6 and change. HBAN will break out upwards out of its compressed triangle and get a move north to the top of the triangle. Both the DGP and the GLD ETFS will break out north out of their triangles and activate 30 year break outs. And finally ANDS will finish its sideways consolidation and get a big upward breakout move.
Now if we live in a perfect world then every single one of those outcomes in the preceding paragraph will come true!
It is going to be fun to revisit this post in a week or two or three and see what actually happened. I will revisit it and think I had better set up an email reminder in my google calendar.
By the way have you ever tried using the google calendar ? You ought to if you need help remembering future events. It is a great way to have events and reminders sent to you by email days before they happen. It is probably one of the most useful apps I have ever used from Google.