Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Tuesday, the 6th of August.
Every Market Deserves To Rest Once In A While
The indices appear to be on the defensive today, however that's not say we have reached a top or that the trend has changed from positive to negative. Trend changes tend to take time and usually don't happen overnight. For myself, the "line in the sand" on the DOW (INDEX:DJI) is the 15,400 level. It is at that level where I would exit my long position and move to the sidelines and await the next signal. Moving to the sidelines does not change the bigger trend picture for the DOW. I still remain long-term bullish, providing that the monthly Trade Triangle remains in the green column.
As I reported yesterday, there was a major buy signal for Apple (NASDAQ:AAPL) and despite today's pullback, I am still positive on this market and see it moving much higher. The target levels I will be looking for are between 450 and 575.
The gold market has once again shown its true colors by resuming its downward slide. I would not be surprised to see further weakness in this market.
The Dollar continues to be on the defensive against the Euro, with the Euro moving over the 1.33 level. Look for major resistance to come in around 1.34. I will be watching this currency pair very closely to see how the market acts around the resistance level at 1.34.
One of the concerns I have for crude oil is that it could possibly be making a Double Top. The Double Top high is around 108 level. I think we need to see it close over that level to see this market regroup and move higher.