It would appear that the summer doldrums have arrived early this year as we are seeing choppy, directionless markets with no clear-cut trends at the moment. Certainly, the equity markets are taking their time to continue their uptrends, like the Dow and the S&P 500. Only the NASDAQ is in a clear downtrend according to the Trade Triangle technology.
This morning there is a new weekly Trade Triangle in Crude Oil (NYMEX:CL.N14.E), which indicates that the trend is now on the upside in this commodity. This new buy signal comes at a time when summer driving in the states will be at an all-time high for the year. The high price of crude, which is well over $100 a barrel now, could be a thorn in the side of the economy. I will be monitoring this situation very closely as oil prices affect many areas of the economy.
Gold (FOREX:XAUUSDO) continues moving sideways, but is forming an interesting technical chart picture. I will be discussing the potential technical pattern I see in today's video. Gold has resistance around $1,315.52 and support appears to be coming in at $1,280.00. Again, this is a market I am monitoring very carefully as Q2 has been a very good quarter for trading gold using MarketClub's Trade Triangles in the past.
In regard to the US Dollar vs the Euro, a move over the 1.3750 level will produce a short covering rally the could push this cross back to the 1.3850 level. This pair has been in a broad trading range, lacking any strong direction either way.
An early scan of the Trade Triangles today indicated that there were new monthly Trade Triangle signals in equities that trade over 2 million shares a day on average. This may change later today, be sure to check back in with the Trade Triangles and see what new markets are trending.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
