The market condition scans continue to show a positive bias with reasonable energy. However, many of the charts in the momentum scan have bearish candlestick signals. The market bias indicators are showing a bias for a correction. Futures this morning are virtually flat and the DAX is up marginally indicating a flat open.
Price action yesterday while up in the morning, spent most of the day in a sideways trading range, with the indices closing marginally positive. Gold broke the $1000 barrier and then closed slightly below. Silver continues to follow gold, but there does not appear to be any fundamental catalysts supporting silver. Oil popped slightly yesterday, but remains in a range.
The price action, particularly in gold, has a speculative flavour, causing me to be cautious about committing funds to this area. The Canadian banks have reached previous highs and a review of long term charts (5 to 10 years) shows that there is significant resistance to moving above current levels, bringing caution to this sector as well.
September is often considered the worst month of the year, but it looks like it will not be following this scenario this year. I prefer to buy on pullbacks, but when the markets shift into speculative mode, it is difficult to find setups.
| Index | Change | %Change | Level | Phase |
| TSX | +87.83 | +0.80% | 11105.30 | Bullish |
| DJIA | +56.07 | +0.59% | 9497.34 | Bullish |
| Nasdaq | +18.99 | +0.94% | 2037.77 | Bullish |
| SP 500 | +8.99 | +0.88% | 1025.39 | Bullish |
| Russell 2000 | +5.88 | +1.03% | 576.38 | Bullish |
| NYSE | +88.94 | +1.34% | 6726.07 | Bullish |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a positive bias
Energy: moderate
Primary Trend: sideways
| Sector | Phase |
| Consumer Staples | Bullish |
| Healthcare | Bullish |
| Technology | Bullish |
| Utilities | Bullish |
| Energy | Bullish |
| Financials | Bullish |
| Industrials | Bullish |
| Materials | Bullish |
| Consumer Discretionary | Bullish |
Source: Telechart
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