Thursday, May 16, 2019

Daily Update

As noted in Tuesday's post on May 14th, the anticipated wave B timely happened yesterday along with the beginning of wave C that took S&P to as high as 2892 today. It remains to be seen how much further along this uptrend reaches after testing the first upside target of 2889-2896 band. Keeping an open mind with unbiased view is important. Hourly cycle is still up until <SP_Day_Hour>. However, for uptrend to continue, price has to hold above hourly trend level <SP_HT1> in S&P futures. Daily S&P resistance and VIX support trend level is at <SP_DT1> and <VIX_DT1> respectively.

Continued daily buy signal bring gains in US Dollar. For uptrend to continue, price needs to hold above hourly trend level <DXY_HT1> and similarly below <EURO_HT1> for EURUSD.

April retail sales dropped by -0.2% m/m and so did the Industrial Production by -0.5%. March inventories remained unchanged. April housing starts rose 5.7% and jobless claims dropped to 212K - something positive.