Not much has changed over the last week. We have the Fed meeting and options expiration out of the way now as we head into the next Holiday season and a shortened trading week. Markets like to rally into Holidays so perhaps we get one last rally this week. After the Holiday, it isn’t out of the realm of possibilities to get an intermediate trend change.
So far, the Dow has remained strong while the ES is still stuck inside that 1560 resistance area. The real stick in the mud is the NQ. It failed to exceed that 2817 MTPredictor wave 2 or b swing high and formed a market structure high instead. This could mean the swing high is in there an it is ready for a decline. If it can take 2817 out then we may see the markets sync up and start to run on all cylinders. Until then, however, it is still time to be protecting the long side.
Gold and silver have come off support as the Cyprus news unfolded. We’ll see if they can get any additional follow through to the upside resistance at the 28.50 level in silver and the 1628-30 level in gold.
Check out the rest of this weeks analysis featuring the MTPredictor Elliot wave and Fibonacci trading software for stocks, commodities, futures and forex.