Jul 13

Weekend Outlook for 14th July 2014

Markets so far hit resistance around 1975-1980ish level as mentioned and started a pullback. I still expect markets to be in a pullback mode for the very short term. At least a move down to around 1930 I think is possible in this upcoming week.

I believe that we saw a short term top at 1986 and Europe markets may already have made some important tops like DAX hitting 10.000 mark and started to sell off from that high.

Gold still pushing hard and I’m a believer in Gold and Silver, I remain bullish those metals for rest of this year. However a short term pullback SHOULD be in the making as we see they are very overbought. But does an overbought indicator tell us that we go down ? No…. we can still press higher even if overbought and Gold is now still in uptrend here last weeks.

If we dont get a short term pullback this week in Gold and Silver I dont see any kind of bigger pullbacks and then Gold/Silver stocks should explode higher.

Conclusion: The conclusion is I think we see another sharp sell off early this week , going down to at least 1930, we might even go all the way down to 1900 but after we get this short term sell off/pullback , I think we are going for another rally higher on SPX, probably to test 2000 and higher. However , for short term we should be cautious and bearish mkts. We might see a mini bounce very early this week to then sell off harder later this week.


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