I have not changed my view that we are in an equity bear market decline.
Within the context of a bear market, countertrend rallies across the major stock indexes tend to be vicious and sharp… but they don’t last long.
Today we share charts of the S&P 500 Index futures and the Nasdaq 100 Index (see below), with downside price targets. Although the S&P 500 could reach up to 4300, we believe it will ultimately fail and head down to 3900 or lower. The Nasdaq 100 may aim for 12150. That said, we also have a target down near 10650.
WTI Crude Oil has turned up nicely after the ellipse buy signal highlighted last week. We believe price is in gear for further upside.
Gold has been a disappointment as price reversed back down to close below the recent ellipse buy signal and stopped out the long trade. We remain on the sideline for now until we see more evidence for the next directional move.
S&P 500 Index Futures Chart
Nasdaq 100 Index Chart
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.