Aug 16

Weekend Outlook for 18th August – Bulls still in control

So here is my view after an excellent week for the bulls with SPX going from 1905 to 1955 , ending a really nice week. As expected the SPX bottomed in the 1900-1915 area and congrats if you loaded long this pullback.

Here is my view this week:

1. SPX is likely to rally higher , to test new all time highs, possible a test of 1985-2000 area before another pullback due. However I think SPX is more than due for all time highs. As long SPX remains above 1930 I have no worries for bulls.

2. VIX is looking like its near a bottom , my target on VIX was 11-12 level and I believe we might see this level sometimes this week, however dont expect VIX to go much further down from here, but find a base in this range.

3. Gold is likely to breakout higher above 1324 , statistics and seasonality is very bullish next months

4. NYSI says that markets might have a lot more upside than we think, most stocks still sold off hard and oversold, so we have room to go to upside , that is what NYSI tellig us.


All in all – expect SPX to keep grinding higher going for new all time highs – as long SPX above 1930 I see no worries for bulls , but if we broke 1930 I would take profits on longs and consider shorting mkts again , but until then stay long and strong.


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