The Day Ahead: PM Edition 2024-08-27

In a holding pattern ahead of Nvidia earnings

Bonds

Bonds haven’t done much in the last couple of days as they travel sideways. Again, the forecast is for higher prior to the next consolidation.

Expect higher

Should eventually push higher

Crude Oil

CL slipped back today in what I think is a wave ‘(IV) of [C] of ii.’ The alternative is that the ‘[C] of ii’ is set and now very early in ‘iii’ down. We will see if CL follows the intraday cycle up into the end of the month.

Mild bias to a push for 79.10-79.30

Follow the intraday cycle up?

Dollar Index

DX finally starting to stabilize but you can make a case that one more up/down sequence is required to enable a meaningful reversal.

A small fourth wave bounce due

Euro

The case for a reversal is a bit stronger in Euro though it does need to drop under 1.1096 for confirmation.

y of (ii) complete?

Promising but need lower for confirmation

Gold

My comments from yesterday still stand in gold, that by looking at the daily line-on-close chart, you can make a case for a completed pattern but needs a drop under 2359.70 for initial confirmation of a reversal.

A possible high

A new high possible if 2359.70 holds

S&P 500 Futures

The S&P 500 just traveled sideways on Tuesday as they wait for Nvidia earnings after the bell on Wednesday. I’m assuming higher but we will see.

Assuming an attempt to retest the high

Assuming higher into the end of the week