MTU Weekend Ed. - Monthly Outlook Update (2/27/15 close)

Stocks, Bonds, USD, Gold - key intermediate scenarios to watch

Stocks
SP500 achieved a new record high of 2119.59 in February. We track the recent advance as the blue wave [3] or the green wave [5] in Chart S1. Chart S2 presents details of the final phases of blue wave [3].

Note that the pullback this past week is testing important near term support levels as highlighted by the green lines in Chart S3. The outcome of this retest may help us assess whether SP500 is at the end of wave [3] or at the beginning of wave [5]. A breakout failure increases the likelihood of wave [3].




Bonds
The two long term tracking scenarios for the 10Y Treasury yield index remain unchanged. See Chart B1.

USD
The USD index, in February, delivered an inside bar on the monthly time frame, keeping the two intermediate term tracking counts on the table (Chart $1).

The USD index may also be about to reveal its long term trajectory (Chart $2). A convincing break above the green line in Chart $2 could suggest higher highs and potentially new all-time highs to come. A rejection by the upper red line in Chart $2 lends support to a bearish diagonal triangle from the 1980s high. Wave E-down of the potential diagonal triangle could coincide with a fib-618 retrace of the 1980 high, which is around the 60s.

Gold

Last month, we observed that "Gold, in USD terms, needs to clear the June 2014 high around $1350 to break above its two-year range. Otherwise, Gold remains susceptible to several bearish scenarios to conclude wave C off the 2012 high." See Chart G1. Gold managed to rise to just above $1307 before reversing nearly $100 this past month. See Chart G2. So keep an eye on various bearish scenarios as outlined.

There is a chance that Gold($) indeed bottomed in 2014 and Chart G3 tracks February's pullback as a wave two retrace against a leading diagonal triangle wave one off the 2014 low.

This scenario gains additional support if the lateral support in Gold priced in JPY and the trend channel support in Gold priced in euro, as highlighted by the green lines in Chart G4 and Chart G5, can hold.

Market Timing Update (2/27/15)

[EOD] Stocks -

[9am] ES update-
Month end. See chart.

Market Timing Update (2/26/15)

[EOD] Stocks-

[1015am] SPX update-
Tracking counts and squiggles. See charts.

Market Timing Update (2/25/15)

[EOD] Stocks -
Potential small-degree EDT in SPX? contracting or expanding? See charts for tracking counts and squiggles.

Market Timing Update (2/24/15)

[1pm] SPX update -

[820am] ES update -

Market Timing Update (2/23/15)

[EOD] Stocks -

[915am] ES update -

MTU Weekend Ed. - Breaking Out (2/20/15)

Stocks broke out from a 3-day consolidation to a new record high this past week. SP500 appears to be ready to deliver an overthrow with respect to the blue trend line in Chart 1 either as the green wave (3)-up of [5]-up or the blue EDT wave (5)-up of [3]-up. At the same time, odds appear to favor a new high in the Nasdaq Composite index, which is 3.5% away (Chart 2).

If Friday’s break out in SP500 is a small degree wave [v] off its February low (Chart 3) which would be consistent with the less-impressive cumulative AD-line (Chart 4), the near term upside should be capped around 2146 as wave [iii] cannot be the shortest wave. Near term support levels for SP500 are around 2070 and 2030 at the moment. A bullish alternative is an extended wave [iii] highlighted by the green labels.

The decennial pattern and the presidential cycle point to a slight downward tendency for the rest of the month. See Chart 5 and Chart 6.

Market Timing Update (2/20/15)

[840am] ES update -
Squiggles from the Feb low. See charts.

Market Timing Update (2/19/15)

[EOD] Stpcks -
Chart 1 and Chart 2 present near term tracking counts and squiggles.  With SP500 rose just above 2102 intraday, it has met the minimum target of a potential expanding EDT we have been tracking (Chart 3) price-wise, but not yet time-wise.  See charts.

Market Timing Update (2/18/15)

[EOD] Stocks -
Tracking counts and squiggles.

Market Timing Update (2/17/15)

[EOD] Stocks-

[850am] ES update-