The SPX started the week strong and reached our upside target on Tuesday. However, it couldn’t hold onto the gains, reversed trend and finished the week flat. One thing to bear in mind is that during all sell-offs this year (February, April, May and June) the first swing low was followed by a lower low before the uptrend resumed:
Those who don’t like to wait for the appearance of automatically generated trading signals can keep on the right side of the market by incorporating pivot levels into their analysis. The CIT Pivot line (not to be confused with floor trader pivots) is a convenient tool for visualizing entry and exit points and for stop/loss placement. More importantly, these levels (along with the daily, weekly and monthly targets), are known ahead of time and allow you to formulate your trading strategy in advance. It helps being proactive instead of reactive.
In the charts below the red and green horizontal lines are displayed at levels above/below which long/short entries should be considered.
Current signals: Daily Sell, Weekly Sell, Monthly Sell
Monthly CIT pivot for SPX at 2916, S3 – 2735, R1 – 2953
The projected trading range for next week for SPX is 2730-2830:
Oil remained on a sell signal and reached our weekly downside target. It closed on Friday just 37 cents above it.
Current signals: Daily Sell, Weekly Sell.
Monthly pivot for Oil at 73.3, S1 – 71, R1 – 76
The projected trading range for oil for next week is 66.65 – 71.65:
Gold came to within $3 of our upside weekly target on Monday, but lost momentum and traded flat after that. It remains, however, above 1220 which is a key bullish reversal level.
Current signals: Daily Buy, Weekly Buy
Monthly pivot for Gold at 1196, S1 – 1172, R2 – 1240.
The projected trading range for gold for next week is 1210 – 1247:
Half of the G6 pairs hit their targets, the rest traded flat.
USDCHF showed weakness at the beginning of the week but recovered quickly and rallied to within a few pips of our upside target.