We got the volume (although Friday's volume was awfully easy to beat), but the gain was low, coming in at 1%, which in the past would have been enough to trigger a follow through day. I'm not going to make a call, because IBD seems to call them when they feel like it whether it meets the standards or not, and their calls have been uncannily accurate, so give them a couple of hours. They usually post it either on the front page or in their market wrap video, neither of which require a subscription. Most significant for me we that we broke through the 1340ish area, which was looking like it was going to be resistance. It was also the midpoint between recent highs and lows, so we are now in bullish territory and poised to take a shot at another rally. Here we may run into some seasonal weakness, but that is not assured, and we can easily move up quickly from here. However, the tendency for June and July to be weak should not be ignored.
WTI crude oil is getting up off the floor after being tripped up a month ago. I had this in a range between 96 and 114, which seemed to work ok, but looking at it from a different angle, i put the support at 93, which was the previous resistance, and that seems to fir the chart a little better. The difference is fairly trivial, but it makes a pretty big difference when you look at where it closed today.
It doesn't make much difference where you put the pivots on gold, in any case it is in the upper half of it's range. The very small drop today is an indication that the market isn't quite buying the "all is well" bs coming out of Europe.
The Bond market is buying anyone's bs. This is now in a serious downtrend and it looks like 30 is going to be a very important pivot point.
The US Dollar index make a sharp move up after a long drop, and may have been a case of too much too soon. You would expect a 50% retracement of that move, and that is what we have. Now we have to wait and see which way it goes from here.
Today probably won't quite qualify as a follow through day, but it does appear that the Mya correction is about over. I expect to see the market mmove up from here, but whether it can get to a new high is another story.
I will have the new highs update shortly.
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