Each of the U.S. indices above have either TD9, RMI or “buy the D point patterns” in place which suggests a further rally is likley.

We begin our morning with U.S. equity futures having follow through from yesterday’s rally. The NQ is trading into the center of its profile, the level where both buyers and sellers believe that fair value exists within its profile. A move above11541 would signal a move to the top of its profile, 11841. The RTY is trading into top of profile resistance. A close above 1757 would signal a change in trend.. The YM should target 30545 and the ES should target the top of its daily profile, 3806.

This morning’s follow through has generated a bullish crossover for the S&P 500 market breadth for its daily time frame. As long as this condition remains, the ES should target the top of its profile, 3807.

The NQ is very close to generating a bullish crossover as well. A bullish crossover would signal that the NQ should target the top of its daily profile, 11841.

Gold appears to have bottomed and the proof of this will be a weekly close above its OUL, 1719.20. The daily Silver contract is dealing with TD9 breakdown resistance. We know that there is a directional correlation between gold, silver and the mining equities. With both gold and silver at key resistance levels, it suggests caution in beginning a long mining index trade at the moment.

When instruments are at resistance levels, we look to the intraday charts to see if they have topping patterns in place that suggest a retracement is likely. The 120-minute and below charts show RMI tops for gold. However, support has held for each of those time frames, meaning that gold’s retracement could be over. Let’s continue to monitor price action in hopes that metals have more of a retracement and perhaps a better entry into the mining sector.

A market overview as of 7:38 a.m.

• The daily ES chart shows a confirmed “buy the D point” bottom and with price above its OUL, a run for the top of its profile is likely, 3807.

• The spot VIX index remains above its 50-day EMA, which is a bearish directional signal for the S&P 500.

• The daily NQ chart shows a failed TD9 bottom pattern and would need a bullish reversal candle to confirm a “buy the D point pattern”. Short of that, price should move lower.

• The daily YM chart shows a “buy the D point” bottom and with price above its OUL, a run for the 30545 area is likely. A move above that will bring the 31256 area into play.

• The daily RTY chart shows a confirmed TD9 & “buy the D point” bottom with price having resistance at the top of its profile, 1757.

• The U.S. dollar index has formed a RMI top and with price below its OUL, a further retracement is likely.

• The daily Gold chart shows a TD9 and RMI bottom with price targeting its TD9 breakdown area, 1742.90.

• The daily Silver chart shows that price is taking on TD9 breakdown resistance.

• The daily Copper chart shows a TD9 bottom with a consolidation within its daily profile.

• The daily chart for Light Sweet Crude shows a TD9 bottom pattern with 86.68 – 88.70 being its price target area.

• The daily Natural Gas chart shows a failed TD9 bottom patterh which suggests lower price is likely.

• The daily chart for T-bonds shows a TD9 and “buy the D point” bottom pattern and with price above its OUL, a run for its profile resistance areas are likely.

In overnight trading,

Markets in Asia closed mixed last evening:

• The Shanghai index needs a bullish reversal candle to confirm a RMI bottom pattern.

• The Hang Seng still maintains its TD9 bottom which suggests a run for its OUL.

• The Nikkei 225 confirmed a “buy the D point” pattern yesterday and with price above its OUL, a further rally is likely.

Markets in Europe are trading lower as of 7:01 a.m. this morning:

• The FTSE has formed a TD9 and RMI bottom pattern and a close above its OUL will suggest a further rally is likely.

• The DAX has a TD9 and wave 7 (g) bottom pattern and a close above its OUL will suggest a run for its TD9 breakdown area, 13111.38.

Major currencies shows that as of 7:02 a.m.:

• The U.S. dollar index has formed a RMI top and with price below its OUL, a further retracement is likely.

• The euro has confirmed a RMI bottom pattern and with price above its OUL, a further counter trend rally is likely.

• The Yen has a TD9 top and RMI top which has not really gotten any traction.

• The Great Brittish Pound has formed a TD9 and “buy the D point” bottom and with price above its OUL, a run for its TD9 breakdown area is likely, 1.1549.

• The Canadian dollar has formed a “sell the D point” pattern and a close below its green OUL will suggest a furhter retracement.

• The Sweedish Krona completed a TD9 top with a price target of its TD9 breakout area, 10.67.

• The Swiss Franc completed a TD9 top with price finding support at its green OUL and therefore is neutral at the moment.

U.S. equity futures are trading higher as of 7:11 this morning:

As of 7:11 a.m., the ES mini charts show:

• The monthly chart shows that price has regained its TD9 breakout support area.

• The weekly chart shows that its June RMI bottom failed last week. A RMI signal is present which needs a new bullish reversal candle to reactivate this bottom pattern.

• The daily ES chart shows a confirmed “buy the D point” bottom and with price above its OUL, a run for the top of its profile is likely, 3807.

• The 30, 60 & 120-minute charts show failed TD9 topping patterns,which suggests a strong upward mometum rally.

As of 7:15 a.m., the NQ charts show:

• The monthly is trading below TD9 breakout support, which brings its next TD9 support level into play, 7427.50. That being said, October could generate a TD9 bottom pattern.

• The weekly chart shows that its June RMI bottom failed last week. A RMI signal is present, which needs a new bullish reversal candle to confirm another RMI bottom signal.

• The daily NQ chart shows a confirmed “buy the D point” pattern and a move above 11541 will signal a run for the top of its profile, 11840.

• The 30, 60 & 120-minute charts show failed TD9 topping patterns,which suggests a strong upward mometum rally.

As of 7:18 a.m., the YM charts show:

• The monthly chart shows an AB=CD down pattern in progress.

• The weekly chart shows a a RMI signal that needs a bullish reversal candle at weeks end to reactivate a RMI bottom.

• The daily YM chart shows a “buy the D point” bottom and with price above its OUL, a run for the 30545 area is likely. A move above that will bring the 31256 area into play.

• The 30, 60 & 120-minute charts show failed TD9 topping patterns,which suggests a strong upward mometum rally.

As of 7:21 a.m., the RTY charts show:

• The monthly chart shows a TD9 bottom that remains in place.

• The weekly shows that its June RMI bottom remains intact and another RMI bottom may be confirmed on Friday.

• The daily RTY chart shows a confirmed TD9 & “buy the D point” bottom with price having resistance at the top of its profile, 1757.

When it comes to market breadth:

TAS market breadth for the NQ shows bullish crossovers for its 60 & 240-minute time frame and its daily is very close to generated a bullish crossover as well. Currenlty there are 16 daily instruments trading above profile vs. 17 below profile.

TAS market breadth for the ES shows bullish crossovers for its daily, 240 & 60-minute time frames.

Above are the TAS market breadth indicators for the sectors that make up the S&P 500.

This link provides further explanation of the speed dials & the meaning of their percentages

In summary, the wheel of the odometers represent:

1. The percentage of the market that is bullish, trading above profiles (resistance) for its time frame, represented by the amount of green on the dial.

2. The percentage of the market that is neutral, trading between profiles (support & resistance) for its time frame, represented by the amount of blue on the dial.

3. The percentage of the market that is bearish, trading below profiles (support) for its time frame, represented by the amount of red on the dial.

4. The percentage displayed within the dial represents the net percent of bulls vs. bearish. If 50% of the TAS profiles are bullish and 20% of the TAS profiles are bearish, then the percentage in the speed dial would be 30%.

The NYSE Advance/Decline Oscillator is working off its oversold condition and has a divergence pattern which formed when price made a lower low, but it’s A/D Oscillator did not.

The spot VIX index remains above its 50-day EMA and therefore sellers are in control of the S&P 500.

In the commodity space as of 7:27 a.m.:

As of 7:28 a.m., the Gold charts show that:

• The monthly chart shows that price is trading into its bullish structured profile support area.

• The weekly chart formed a “buy the D point” pattern with last weeks bullish Piercing candle. Price is now taking on OUL resistance.

• The daily Gold chart shows a TD9 and RMI bottom with price targeting its TD9 breakdown area, 1742.90.

• The 30, 60 &120-minute charts show RMI tops and thus a retracement may unfold.

As of 7:31 a.m., Silver charts show:

• The monthly chart needs a bullish reversal candle to confirm a “buy the D point” pattern.

• The weekly chart shows that price is taking on TAS profile resistance.

• The daily Silver chart shows that price is taking on TD9 breakdown resistance.

As of 7:32 a.m., Copper charts show:

• The monthly chart shows that price may be targeting the 2.42 area.

• The weekly chart shows that price is consolidating within its profile.

• The daily Copper chart shows a TD9 bottom with a consolidation within its daily profile.

As of 7:34 a.m., the charts for Light Sweet Crude show:

• The monthly chart suggests a run for 70.16.

• The weekly chart has formed an AB=CD down pattern.

• The daily Crude Oil chart shows a TD9 bottom pattern with 86.68 – 88.70 being its price target area.

As of 7:35 a.m., the chart for Natural Gas show:

• The monthly chart has an RMI top and with price below its OUL and top of its profile, a further move lower may unfold.

• The weekly chart has a RMI top with its recent low being a target.

• The daily Natural Gas chart shows a failed TD9 bottom patterh which suggests lower price is likely.

As of 7:07 a.m., soft commodity charts show that:

• Wheat is consolidating wtihin its daily profile.

• Soybeans need a spike below yesterday’s low by Thursday to generate a TD9 bottom signal.

• Corn is consolidating within its daily profile.

• Coffee is consolidating within its new profile as well as trend line support and resistance.

• Sugar has a RMI bottom that has led to a sideways consolidation.

• Cocoa has a confirmed RMI bottom with resistance being 2395.

As of 7:10 a.m., the chart for Natural Gas show:

• The monthly chart has completed a TD9 bottom pattern which suggests a run towards its OUL.

• The weekly chart needs a bullish reversal candle to confirm a RMI bottom.

• The daily chart shows a TD9 and “buy the D point” bottom pattern and with price above its OUL, a run for its profile resistance areas are likely.

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