Key Takeaways

  • Monday’s bounce looks similar to the bounce from early May, and insufficient evidence of trend improvement is present which would suggest a meaningful low is in place.
  • China, and specifically, Chinese Tech might offer relative outperformance vs US Tech between now and July.
  • WTI Crude looks to be nearing channel resistance which likely holds this week at 114.
The video in this report is only accessible to members
The video in this report is only accessible to members

Monday’s bounce started to stall out by mid-afternoon and groups like Technology are already beginning to wane before SPX or NDX have even broken their respective downtrends.  While prices could push a bit higher, it’s doubtful SPX eclipses 4155 and very well could be closer to resistance to this bounce at 4065-4100 into Tuesday/Wednesday.  Unfortunately, the combined factors of 1) Elliott-Wave structure 2) Lack of Counter-trend exhaustion at last week’s lows, and 3) Ongoing bearish cycles are factors which keep trends pointed lower. Furthermore, the first sign of trend improvement would certainly be welcomed with open arms, but frankly, has not occurred just yet.  Thus, until there is evidence of either trend improvement, or evidence of downside capitulation on pullbacks into early-to-mid June, it’s still proper to be defensive.

Source: Bloom...

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