We still have conflicting time frames which means that we are not expecting a huge run from here (provided last week's bullish reversal follows through). We have two new bullish recommendations based on the daily charts.
Going into the shortened holiday week — which is historically bullish — we have the anticipated higher low and the potential bullish inverted Head & Shoulders Bottom.
While the broader markets fell last week, it was part of a whippy stabilization that has been going on for the last three weeks.
Last week’s fall and partial recovery helped put in another week of building what we hope to be a “tradable bottom.”
The historical bullish seasonal period ahead of us supports that; however, the monthly and weekly time frames do not suggest the type of rally that we saw in the middle of the year.
If prices should go back down to Thursday’s low, it should only be momentary, and then the markets reverse right back up again.
A decisive break below it, however, then expect the test of the October low and maybe even slightly lower than that.
A move above Friday’s high and we should see the broader markets begin to rally towards the November high at least.
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