Ordinarily on Mondays, my Five Points video covers the five asset classes that drive markets every single day:
- Stocks
- Bonds
- Commodities
- Currencies
- Cryptocurrencies
Today, we’re only covering four of the market’s Five Points.
But there’s a good reason – and I’ll fill you in below.
For now, let’s get to this week’s charts, starting with the SPDR S&P500 ETF (SPY)…
This week, we’re using Elliot Waves, a contrarian momentum indictor, to help us out (check out the video for more on why…)
The summer doldrums have set in during what is one of the most bullish periods for stocks (ahead of the Fourth of July holiday in the States), so not much has changed.
I’m still predicting we land somewhere in the 550-580 range, unchanged from last week.
So stocks are looking good, right?
Well, not so fast…
First, according to my Money Calendar the current seasonal bull is about to end, right about Mid-July. So that’s the first thing I see that could weigh on stocks in the near-term.
The second thing that could spell trouble for stocks is this chart of the Invesco DB US Dollar Index Bullish Fund (UUP).
I’ve noted on the chart that the dollar has climbed to levels not seen since the pandemic.
That’s not a good sign for stocks.
But it’s not all bad news for traders looking for a profit – just click below for my full analysis:
Now, you might notice that we didn’t cover cryptocurrencies today.
That’s because, with all the action happening in the crypto space, I want to spend tomorrow taking a deep dive into Bitcoin (BTC) and Ethereum (ETH).
I’ll give you my projections for both coins, show you the key levels I’m watching right now, and explain why I think the crypto market could be your best bet for profits as we head into the second half of the year.
Stay tuned! I’ll have this special video update for you tomorrow at 3 p.m.!
Until then!
Good trading,
Tom Gentile
America’s Pattern Trader