08/13/2016 Weekly Commentary: Markets held above the Pink Lines (10-day avgs.) all week… Looks like the S&P 500 is about to complete Wave 5 up, since the bounce off the Green Line in late June.
The Inverse VIX XIV and Small Caps IWM were not able to make new Highs this time up, indicating exhaustion. After Wave 5 up is complete, the S&P 500 should drop down to test Support around 2130.
There are plenty of divergences indicating a narrowing, and topping Market (See Chart Above), but it has not mattered with the super low Interest Rates. It will normally take more upward action from rising Commodities prices, to crack the Bond Markets.
Current Open Positions Nimble traders should have plenty of Cash for a pull-back soon, as we sold our last position Nintendo NTDOY on Friday for a 6.4% gain..
Money Wave Buys soon for AKS CLF FCX RICE X XME & Z We will email you when they are ready.
When the Market breadth is narrow like it is now (few new highs), either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.
Current S&P multiplies also “stretched”. No sale there either.
would appreciate a live link to $BPSPX
Chart of Bullish % of S&P 500.