Continued moderate bullish price action in the US majors with the VIX dropping right on queue and markets popping (pure sentiment call). Gold and Silver pushed higher today while Oil contracted. The NQ is still pushing into the range of our upper boundary with moderate bullish price action. The The DOW closed +53.91 (+0.21%), the ES closed +14.50 (+0.52%) and the NQ closed 32.50 (+0.47%). Gold closed +4.80 (+0.35%) and Silver closed +0.086 (+0.54%). Oil closed -0.45 (-0.70%).
We are expecting Metals and Oil rotate a bit lower over the next few weeks in relation to our price cycle analysis. Gold should rotate back below $1300 and Silver should settle near $16.00 before this downward rotation ends. Oil may rotate moderately lower over the next few weeks, but overall price cycle analysis shows consolidation and sideways trending for a few more days. Be prepared.
Bitcoin reacted today by consolidating within the Price Channels we have been discussing. These channels are currently at $11,000 & $11,130. Within this $130 range, we expect Bitcoin will consolidate before attempting a breakout move. At this point, upside rotation is possible, but the news relating to BlockChain and Bitcoin tend to point to a lower price breakout. Currently, Bitcoin is trading at $11,515.00. Be prepared for additional downside risk at this point. $7,800 is now a very real downside target.
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