Midday Update: 2023-01-26
Gold, bonds and Euro retreating
In my quick scan of Twitter, I saw someone scratching their head wanting to know what went wrong with gold today. Well, in my view, no big surprise as the negative divergence is trying to work its magic. Is it a confirmed reversal yet? Not quite but could be the early steps.
Same idea with Euro. Some reaction to a double top but bears have more work to do.
Bonds are down but doesn’t look very convincing. The three wave decline from just under 131^23 looks like (B) of [II] and now up in (C) of [II] with targets of 131^10 and 132^03.
The S&P 500 came through with a new swing high today but bulls need to be careful having achieved this short-term victory. I characterize this a too early to aggressively fade but too late to take new highs for granted. With 4017 holding this morning, probably best to assume there is another high left but be careful.
Yesterday was a bit tricky for SP500 (bull on Day ahead, bearish on Midday, and Bullish today). It was at first a Bull trap, then a Bear Trap. Better to be prudent ,Big Boys are so vicious..! Thanks for your bonus.