Multi-Month Retracement Approaching

Although the indices can move higher, we are witnessing an exhaustion point – Institutions are net sellers, the FED/ESF net buyers. Volume is near absent – Volatility only remains in the most liquid instruments – Energy & Currencies.

2575 remains the potential target for the ES – this places the SPX @ 2578/9.

China is reportedly beginning their new Yuan based contact for Oil tomorrow…. convertible to gold purchased outside of the SGE – ie. Global Markets.

Martin Armstrong believes 23,700 is possible for the DOW on this move.

I do not… Marty is plenty wrong, as are we all. Socrates issued 4 intraday warnings over the last week… 2 – Potential Sells, followed by 2 revealed targets for DOW and reduced risk profile as support lies at 20,000K now.

Whipsaws abound.

Crude Oil sitting @ support 50.28

Inventory numbers will be out @ 10:30 EST ~ 50 minute time.

The way the tape has traded all week it seems the ESF/FED are concerned about this market running away on foreign inflows while US Banks park capital outside the US…

Yellen speaks on Sunday… suspect there is a surprise within her remarks.

A retracement is pending, a larger one that will provide opportunity when this market finally congests and lift’s off.

For now, it’s looking s great deal like we’ll be heading down into November/December – perhaps we make a new high, perhaps not… it’s not looking healthy for the Bulls.

Aggressive Bid under Au

Gold has been bid heavily since last Friday, there remains a firm hand under the market.

Pullbacks are to be expected – 1272.25 remains an important area. We did not see price dip-in to the 1240s – ideally 1246…

Silver has been outperfroming Gold – an excellent sign. The bid under Silver remains extremely strong.

Targets – barring a break of support, are north of 1400 for gold and 20 for silver.

2575 ES – next target

Pains me to say this as it extends the Bubbles in everything.

Look for 2575 into OpEx as the next Daily Target.

The first payroll drop in 7 years returns – 6 handles on the ES.

Were this a decade ago we’d be down 20-40 handles and that would equate to 3 to 5%…

Remarkable how controlled this mess of a market remains – it will likely get much worse prior to it normalizing. Perhaps it won’t until it simply implodes.

Gold staged a rally to its .618 retirement target. Holding off to see how 1240s trade.