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UPDATE 07/30
STOCKS:
The
long awaited correction finally got started last
week as the markets had their worst week of the
year. The Dow and S&P 500 are both resting on
support levels that should lead to an advance early
this week.
Both
the Dow and S&P are at oversold levels as measured
by the Williams %R indicator. The current reading on
the daily chart of the Dow and the weekly chart of
the S&P are minus 100, which is the lowest possible
reading. This should lead to a rally early this
week.
The
S&P has broken its June lows, while the Dow is still
holding its lows for now. After a rally, I believe
the Dow will also break through the June lows at
13,210. If the Dow does break 13,210, the next
target will be 12,800.
Next
support for the S&P will be 1375. I believe we are
still early in this correction and would be
defensive until later in the fourth quarter. Cycles
have been indicating a low between August and
October. There is no way to know how much lower the
markets can go, but based on prior declines in the
seventh year, I would expect 10 to 20 percent.
BONDS:
September bonds continued the advance to 110 and
should work higher as long as 108 isn’t taken out.
This market will continue to benefit from a weak
stock market.
GOLD:
August gold and the XAU got hit last week as well
and put some doubt in the longer term bullish
picture. They will need to get moving higher next
week to keep the possibilities of $ 750 gold and 185
XAU intact.
Regards and Good Luck,
Jay
Sanderson
TimingStock.com
To
see Jay's past Market Commentary and other products,
please click here
www.reliablestockcycles.com
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Commentary Archives
Long term cycle is bullish -
1/06/07
Next Cycle Low is due In March
-1/27/07
Market still positive -
2/05/07 | 
