Today’s Market Comments:

Stocks closed mixed Tuesday, July 10th. The small cap Russell 2000 rose to a new intraday all-time high, then closed down about 9 points. The new high suggests they are headed higher once the current corrective decline ends. The internals for the market were generally flat. As for the Industrials, a rise above 25,250 would suggest wave v-up is underway. The other possibility is stocks fall hard from here, the Industrials dropping in the final subwave {c} down to complete e-down of triangle iv down from January 2018. One scenario for the S&P 500 is it has started wave v-up, and is running a sequence of subwaves one-up and two-down as it progresses higher to new all-time highs. We show charts for these mappings in tonight’s report.

 

All of our key indicators remain on Buy signals tonight.

 

Our Blue Chip key trend-finder indicators moved to a Buy signal July 9th, 2018 and remain there Tuesday, July 10th. The Purchasing Power Indicator component triggered a Buy signal Thursday, July 5th. The 14-day Stochastic Indicator generated a Buy on June 14th, and the 30 Day Stochastic Indicator generated a Buy on July 9th, 2018. When these three indicators are in agreement, it is a short-term (1 week to 3 months’ time horizon) key trend-finder directional signal. When these three indicators are in conflict with one another, it is a Neutral (Sideways) key trend-finder indicator signal.

Our intermediate term Secondary Trend Indicator generated a Buy signal Tuesday, July 3rd, and remains there Tuesday, July 10th, flat (out of a possible 9 points), at positive + 23, needing to fall below the negative – 5 threshold for the new Sell.

Demand Power fell 1 to 394 Tuesday while Supply Pressure fell 1 to 373, telling us Tuesday’s rise in Blue Chips was weak. This DP/SP Indicator moved to an Enter Long Signal Friday, July 6th, and remains there Tuesday, July 10th, 2018.

The Plunge Protection Team Indicator moved back to an “OFF” signal on March 21st, which means the PPT is not as likely to support the markets while this indicator remains on an “OFF.” This means there is not likely to be significant government intervention at this time, or if there is it will not be effective. This indicator is designed to identify high probability periods where the PPT will be supporting, or buying the stock market (when it is on an “On” signal) and when it moves to a Neutral or Off signal (formerly called Sell), it does not mean the stock market will decline, it means the PPT’s interest in buying the market is off rather than on, and market forces outside the PPT are more likely to determine stock trends up or down. In other words, a Neutral or Off signal means the odds are higher that the PPT stands down or has little influence on price trends. 

Caution: I would not bet the farm on a Crash. Crashes are rare and maybe the pattern will morph into something we presently do not see that is less ominous. Risk must be managed. Maybe the Fed buys the entire stock market, who knows given their track record. Maybe a black swan event is postponed several months.

Gold, Silve r and Mining stocks were essentially flat Tuesday, July 10th. They moved to a Sideways signal Tuesday, July 3rd, as the HUI 30 Day Stochastic triggered a Buy signal July 3rd, and our HUI Purchasing Power Indicator generated a Sell on June 15th. When these two indicators are in agreement, it is a directional signal, and when at odds with one another, it is a combination neutral signal. On May 29th, the HUI Demand Power / Supply Pressure Indicator moved to a Short signal. On Tuesday, July 10th, Demand Power flat at 388 while Supply Pressure fell 3 to 399, telling us Tuesday’s HUI move was weak.

DJIA PPI Rose 1 to + 68.00, on a Buy

DJIA 30 Day Stochastic Fast 53.33 Slow 42.67 On a Buy

DJIA 14 Day Stochastic Fast 60.00 Slow 42.78 On a Buy

DJIA % Above 30 Day Average 53.33

DJIA % Above 10 Day Average 96.67

DJIA % Above 5 Day Average 96.67

Secondary Trend Indicator Flat at Positive + 23, On a Buy

Demand Power Fell 1 to 394, Supply Pressure Fell 1 to 373 Buy

McClellan Oscillator Fell to positive + 101.27

McClellan Osc Summation Index + 2942.74

Plunge Protection Team Indicator -6.21, on an “OFF”  

DJIA 10 Day Advance/Decline Indicator + 513.9 on a Buy

NYSE New Highs 140 New Lows 19

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated a Buy signal Friday, July 6th, 2018, and remain there July 10th, 2018. The NDX Purchasing Power Indicator generated a Buy on July 2nd, the NDX 14 Day Stochastic triggered a Buy signal on July 2nd, 2018 and the 30 Day Stochastic triggered a Buy signal on July 6th. When all three component indicators are in agreement on signals, it is a consensus directional signal. When they differ, it is a sideways signal.

 

The NDX Demand Power / Supply Pressure Indicator moved to an Enter Buy positions signal Friday, July 6th and remains there July 10th. On Tuesday July 10th, Demand Power fell 1 to 424, while Supply Pressure fell 1 to 407, telling us Tuesday’s rise was moderate.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal July 6th, 2018, and needs to fall below negative – 5.0 for a new Sell. It rose to positive + 23.0 on Tuesday, July 10th. 

NDX PPI Flat at + 255.46 On a Buy

NDX 30 Day Stochastic Fast 59.00 Slow 49.00 On a Buy

NDX 14 Day Stochastic Fast 76.00 Slow 53.80 On a Buy

NDX 10 Day Advance/Decline Line Indicator + 23.0 On a Buy

NDX Demand Power Fell 1 to 424, Supply Pressure Fell 1 to 407 Buy

 

RUT PPI Fell 2 + 196.84 on a Buy

RUT 10 Day Advance/Decline Line Indicator + 206.6 On a Buy

 

Today’s Mining Stocks and Precious Metals Market Comments:

 

Our HUI key trend-finder indicators moved to a Sideways signal July 3rd, 2018.

HUI PPI Flat at 182.67, on a Sell

HUI 30 Day Stochastic Fast 60.00, Slow 45.00 on a Buy

HUI Demand Power Flat at 388; Supply Pressure Fell 3 to 399, Sell