The model on a weekly basis improved very slightly. As I explain in the video, I don’t see this as particularly significant at the moment, as we approached the most significant level for 2019 and duly backed off.  What could be significant is that it refuses to go positive with market strength. It enables the moving averages to converge downwards at a lower level which will enable a more powerful thrust in the medium term and a stronger trend to eventually emerge.  As explained last week, since the market could not drop below 2750, it is building energy to slingshot above 2864, but not now.  One week of price action is just not enough to do it and with related markets showing divergencies, it is bad risk-reward to be long here and now. We will take it one day at the time, but failure to crack 2750ish will be a longer term tell.

A video of my detailed expectations for the near term, with important levels to watch, can be viewed at https://youtu.be/maR2kxsyK78

EN
ES EN