The Day Ahead: PM Edition 2024-05-13
Equity indices slip a little on a slow news Monday
Bonds
ZB rose on Monday but to be fair, it wasn’t much as it formed an inside day to that of last Friday. I favor an eventual minor new swing high to that of May 7th so as to form an easy to see five waves up from the April low.
Crude Oil
CL firmed up on Monday and should work on pushing up above 79.36 on Tuesday.
Dollar Index
DX still working to base against 104.98. The dominant cycle is set to turn up, so I think there is a good chance that DX pushes past 105.57 in the next couple of days.
Euro
As I mentioned in the post earlier today, I think Euro is working on a wave two, but not clear on its degree. Bears need Euro under 1.0743 to get any traction.
Gold
I really don’t have much to say about gold as I think it has a good chance to not do much but chop for weeks into months.
S&P 500 Futures
I think we are in a tricky part of the rising pattern now in that we have either set wave [III] or late in its development. I have to give bulls the benefit of the doubt as third waves have a tendency to extend and the last couple of days have been sideways. That said, if we do move higher, I don’t think it is by too much, as I said before, this should be pretty late in the development of wave [III]. Another way to think about this is that the market is just biding time till the economic releases on Wednesday morning which should bring a bit more volatility to the market. Overall, I think the market holds up and grinds higher into next week for Nvidia earnings.
