31 July 2019 – Fed cut rates 25 basis point, market sells off
Indices Dow Transportation closed at 10701.75 with a big spinning top doji candle below its 8 EMA and above its 21 EMA, 50 SMA and 200 SMA. Daily trading range 220.75. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak UpTrend. Momentum – Weak Upward. RSI – 55.8.
Dow Industrial closed at 26864.27 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 562.05. Fractal Chaos Band – Below its FCB. Long Cycle Wave – positive and falling. Medium Cycle – positive and falling. Short Cycle – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 47.
Russell 2000 closed at 1574.605 with a bearish candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 31.0. Fractal Chaos Band – close below its FCB Upperband. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle – positive and falling. Market direction – Weak UpTrend. Momentum – Strong Upward. RSI – 54.9.
Nasdaq 100 gapped down and closed at 7848.7798 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 204.27. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak DownTrend. Momentum – Weak Downward. RSI – 50.3.
S&P 500(SPX) closed at 2980.38 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 59.32. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak DownTrend. Momentum – Weak Downward. RSI – 50.3.
Metals and Commodities WTI Crude oil futures (CL) closed at $57.89 per barrel with a small bearish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 1.01. Fractal Chaos Band – above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 51.9.
Gold (/GC) closed at 1426.1 with a bearish candle below its 8 EMa and above its 21 EMA, 50 SMA and 200 SMA. Daily trading range – 25.5. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – negative and falling. Market direction – Weak UpTrend. Momentum – Weak Downward. RSI – 53.6.
Commodities (DBC) ETF closed at 15.55 with a bearish candle below its 8 EMA, 21 EMA, 200 SMA and above its 50 SMA. Daily trading range – 0.165. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – negative and rising. Short Cycle Wave – negative and rising. Market direction – Strong DownTrend. Momentum – Strong Upward. RSI – 47.4.
Bonds Bond futures (/ZB) closed at 154’22 with a bullish marubozu candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 1.2812. Fractal Chaos Band – broke above its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Neutral. RSI – 56.3.
High Yield bond ETF (HYG) closed at 86.93 with a bearish candle below its 8 EMA and on its 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 0.685. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak UpTrend. Momentum – Weak Downward. RSI – 51.4.
Currency The dollar index ($DXY) closed at 98.568 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 0.678. Fractal Chaos Band – above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 71.4.
EUR/USD closed at 1.1074 with a bearish candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 0.0102. Fractal Chaos Band – broke below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 30.4.
USD/JPY closed at 108.75 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and below its 200 SMA. Daily trading range – 0.504. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and falling. Market direction – Weak UpTrend. Momentum – Strong Upward. RSI – 61.7.
Relative Strength – Sectors On a 3-monthly lookback, the relative strength order of the S&P 500 ETFs are /ES, SPX, XLK, SPY, XLF, XLB, XLI, XLY, XLP, XLE, XLV and XLU.
On a 12-monthly lookback, the relative strength order of the S&P 500 ETFs are XLI, /ES, SPX, XLF, SPY, XLK, XLB, XLY, XLP, XLU, XLV and XLE.
Market Internals Market Sentiment – Bullish. Market Breadth – sloping downward showing more losers than gainers. Volume Acc/Dis – sloping downwards and showing distribution. Skew – 121.71. Vix – 16.12 and Vix Futures – 15.95.
The Week Ahead Market Sentiment remains bullish. Market internals are showing weakness. Skew is normal. Vix is below 17 and Vix Futures is below 16. The leading indicators such as the Transportation and Russell 2000 are still not showing weakness even as the Dow Industrial, Nasdaq 100 and S&P 500 pulled back. The interest rate hike of 0.25% spook the market as it pulled back. The prognosis is for further volatility and likely further pull back.
To Your Wealth! Would you like to learn to trade stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
31 July 2019 – Fed cut rates 25 basis point, market sells off
Indices
Dow Transportation closed at 10701.75 with a big spinning top doji candle below its 8 EMA and above its 21 EMA, 50 SMA and 200 SMA. Daily trading range 220.75. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak UpTrend. Momentum – Weak Upward. RSI – 55.8.
Dow Industrial closed at 26864.27 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 562.05. Fractal Chaos Band – Below its FCB. Long Cycle Wave – positive and falling. Medium Cycle – positive and falling. Short Cycle – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 47.
Russell 2000 closed at 1574.605 with a bearish candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 31.0. Fractal Chaos Band – close below its FCB Upperband. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle – positive and falling. Market direction – Weak UpTrend. Momentum – Strong Upward. RSI – 54.9.
Nasdaq 100 gapped down and closed at 7848.7798 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 204.27. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak DownTrend. Momentum – Weak Downward. RSI – 50.3.
S&P 500 (SPX) closed at 2980.38 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 59.32. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak DownTrend. Momentum – Weak Downward. RSI – 50.3.
Metals and Commodities
WTI Crude oil futures (CL) closed at $57.89 per barrel with a small bearish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 1.01. Fractal Chaos Band – above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 51.9.
Gold (/GC) closed at 1426.1 with a bearish candle below its 8 EMa and above its 21 EMA, 50 SMA and 200 SMA. Daily trading range – 25.5. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – negative and falling. Market direction – Weak UpTrend. Momentum – Weak Downward. RSI – 53.6.
Commodities (DBC) ETF closed at 15.55 with a bearish candle below its 8 EMA, 21 EMA, 200 SMA and above its 50 SMA. Daily trading range – 0.165. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – negative and rising. Short Cycle Wave – negative and rising. Market direction – Strong DownTrend. Momentum – Strong Upward. RSI – 47.4.
Bonds
Bond futures (/ZB) closed at 154’22 with a bullish marubozu candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 1.2812. Fractal Chaos Band – broke above its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Neutral. RSI – 56.3.
High Yield bond ETF (HYG) closed at 86.93 with a bearish candle below its 8 EMA and on its 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 0.685. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – positive and falling. Market direction – Weak UpTrend. Momentum – Weak Downward. RSI – 51.4.
Currency
The dollar index ($DXY) closed at 98.568 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 0.678. Fractal Chaos Band – above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 71.4.
EUR/USD closed at 1.1074 with a bearish candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 0.0102. Fractal Chaos Band – broke below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 30.4.
USD/JPY closed at 108.75 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and below its 200 SMA. Daily trading range – 0.504. Fractal Chaos Band – within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and falling. Market direction – Weak UpTrend. Momentum – Strong Upward. RSI – 61.7.
Relative Strength – Sectors On a 3-monthly lookback, the relative strength order of the S&P 500 ETFs are /ES, SPX, XLK, SPY, XLF, XLB, XLI, XLY, XLP, XLE, XLV and XLU.
On a 12-monthly lookback, the relative strength order of the S&P 500 ETFs are XLI, /ES, SPX, XLF, SPY, XLK, XLB, XLY, XLP, XLU, XLV and XLE.
Market Internals
Market Sentiment – Bullish. Market Breadth – sloping downward showing more losers than gainers. Volume Acc/Dis – sloping downwards and showing distribution. Skew – 121.71. Vix – 16.12 and Vix Futures – 15.95.
The Week Ahead
Market Sentiment remains bullish. Market internals are showing weakness. Skew is normal. Vix is below 17 and Vix Futures is below 16. The leading indicators such as the Transportation and Russell 2000 are still not showing weakness even as the Dow Industrial, Nasdaq 100 and S&P 500 pulled back. The interest rate hike of 0.25% spook the market as it pulled back. The prognosis is for further volatility and likely further pull back.
To Your Wealth!
Would you like to learn to trade stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
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