We should see reversals in all Markets prior to Labor Day – September 4. Equities should retrace prior to the next drop. These are quite normal and given the market is well controlled on low volumes – quick and sharp reversals should be expected.
The Fear trade will quietly die off and begin a rapid re-adjustment or be moved aside for further gains later this year or it will simply implode under its own weight.
Technically – it’s been a very sloppy set of Markets. They do remain quite technical – hitting targets to the tick in many instances.
More on this Tomorrow. I remain bearish – Intermediate Term – on the Metals Complex, with a retest of the prior 2015 lows ahead at minimum – here are the qualifications:
Support is building underneath the PM Complex – 1220 to 1240 – a break of 1220 leads me to believe we will hit 1170 and should be break this level – the lows will be retested. Upside remains 1338 at the weekly downtrend – The monthly is 1362.50 – this is opened as well, but may be a stretch.
It’s going to become volatile once again – although in reverse once the Dollar begins to shake off the 92.50s and move higher. 91.88 remains the warning sign the DX could head lower still.
The Trade War is now front and center… bumpy road ahead.