Further Short-Term weakness in Energy possible, while the US Dollar growing closer to a peak

Technical Strategy Video:

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The chart in this report is only accessible to members

Key Takeaways

  • Trends & momentum have begun to stall a bit near-term, though the Wave pattern argues for a bit more fractional strength above early Nov peaks before any Top
  • Crude Oil weakening looks to extend short-term, but should be complete into next week
  • US Dollar now in a price/time area where this might peak out; Conversely, EURUSD should be bottoming and expect a sharp bounce into December/early next year

Minor stalling in SPX doesn’t necessarily signal a top, but would be more important on the ability to lift back over November peaks near 4765-75. As hourly charts show below, after a three-wave pullback into 11/10, the resulting rally has indeed been constructive in pushing higher in five waves off the lows. Normally this will result in a minor stalling; Yet the daily wave structure does not look complete here, and counter-trend exhaustion per DeMark indicators remains premature. So, it’s still right to expect upside here, for now. SPX could pull back to 4663 without doing any damage, and it’s only important if 4631 is violated, which would put the bearish case on the front burner.

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Key Technical Developments to watch for during the balance of this week

Traditional technical momentum ga...
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