I will be back with regular commentary January 2nd
Unless there is a clear trend or unusual event I will take a break between now and the first of the new year. The stock indexes have been whacked around quite a bit recently. With trading volume usually slowing down through the holiday period, it is a good time to take a breather. Of course big moves can happen when many traders are taking time off. If an unusual event occurs I’ll post charts. As it stands today, the stock index trends are turning back down, but momentum is oversold and starting to turn back up. I’ll leave the mechanical eight second ride bull in the box for now, although I’d prefer a mechanical bear. Gold is absolutely flat, with the dollar looking like this rally could work its way higher. The breakaway gap (on day session dollar index chart) of four days ago should hold, although with short term momentum a little overbought, a re-test of that gap would be constructive and a good place to enter longs if not long already. The adaptive CCI on the dollar index is at the plus 200 level, so a pullback here should be expected in the coming days, which I’d view as a pullback within an emerging uptrend.