So much for SINKO DE MARKETS DAY…

We typically get a low for the rest of the month in the precious metals. Pattern alert GLD ( ETF)…this puts in an outside reversal lower week with a close below 145.45. We sold our longs at 146.20 app. 1500 in the futures. 1495 is the closing number for the weekly outside reversal to the downside in the gold futures.

We are still short the SPU and Aussie. I wish to watch the early action in the SPU before I adjust the stop there. A close in the Aussie above 107.60 will have us buy in the remaining shorts.

You are pre-armed with your cheat sheet of major levels. It will be a price action based technical trading day with many markets in play for major reversals. The Gold,Aussie,Euro,and Spu need to be monitored to see how and where they hold on the first break to determine if they will maintain or reverse some long term patterns. It will be a reaction trade off the major reversal levels today and there are plenty in play.

I almost forgot the Bonds. The Bonds typically put in a major high or low for the month on unenjoyment day. 125.06 is the high for the year in the 30. I would pay attention to this level for it’s effect on the SPU/BOND spread. Price rejection the first time up and a hold on a big break in the SPU could be a significant market tell. In any event it should be a pivotal level for a lot of instruments.