I did a very detailed video this morning really drilling down on the dollar index, crude oil and how I draw trend lines.
The market is at tipping point and odds favor lower prices. That being said headline news will always override setups because traders are emotional and everyone is waiting on news to trade these days.
Pre-Market Analysis Points:
- Dollar index is holding up strong in bullish pattern and keeping pressure on stocks and commodities.
- Oil had a strong impulse wave bounce and a pullback will likely be bought in a few days.
- Natural gas is looking more bullish but must pullback before we look to get long in a couple weeks.
- Gold, gold miners and silver remain in down trends and I’m not looking to short them. Rather waiting for a bottom to form.
- Bonds are trading higher and about to test the upper limit of its channel and just talked about in the morning video and right on queue.
- SP500 is setup for lower prices and that is exactly what we are seeing this morning.
- Poor economic numbers are hitting the market hard this morning pulling it lower on high volume.