- SPX Monitoring purposes; Sold SPX 5/5/17 at 2399.29 = gain 1.06%; Long SPX on 4/24/17 & 2374.15.
- Monitoring purposes Gold: Neutral
- Long-term Trend monitor purposes: Neutral.
This week is option expiration week, which normally has a bullish bias. The pattern that may be forming on the SPDR S&P 500 (NYSE:SPY) is a “Three Drives to Top” and SPY is attempting the Third top now which may not be completed until Friday or early next week. An upside target near 241 is possible. If this is a “Three Drive to Top” pattern, the next decline will tell a lot of what to expect next. If market finds support near 238, than market is on stable ground and will continue to work higher. However if market falls back to 236 or lower (61.8% retracement of rally from Mid April), than a larger “Three Drives to Top” may be forming and opens the door to 229 range later this summer. Sold Long SPX on 5/5/17 = gain 1.06%.
Yesterday the Equity put/call ratio closed at .55. The statistics show that the average gain over the next five days is .5% and average loss is 1%. However the loss has an 88% chance of occurring. With the market being quiet here, expect validity to be picking up possible next week. There is a possibility a sell signal could develop near the 2415 range on the SPX. Staying neutral for now.
VanEck Vectors Gold Miners (NYSE:GDX) is at a level that will prove to be a bullish or bearish outcome. On Previous reports, we mentioned the resistance gap zone near 23.00 that occurred on April 25. If the gap is tested on higher volume, than expect a bullish outcome and if tested on lighter volume, expect a bearish outcome. On the chart above the gap is being tested on lighter volume which suggests the gap has resistance. The top window is the RSI for GDX. If market is making a top here the RSI should turn down. So far the RSI is holding steady just above “50” and not give a clue yet of what next direction will be for GDX. We will wait and see what develops from here.