06/09/2016 Daily Commentary: Markets dropped down on the opening, as Oil prices pulled back and Bonds soared. Maybe another small rally in the morning, but Markets are very over-bought on the short term. The S&P 500 has Support at the Pink Line (10-day avg.). . Closing below the 2111 Breakout could be “Bearish”.
The rally since the May 19th should be finished with Wave 5 up (See Chart). Then a pull-back, if tomorrow’s rally FAILS at Wednesday’s high of 2121.
Be patient and Wait for Green Zone Buys. Caution! Most Leading Funds are in or near the Red Zones (probably too late to Buy for the short term). Many Funds are having trouble staying Above 90 Relative Strength. Markets are tired.