We begin our morning with U.S. equity futures trading lower.

That being said, each of the 30-minute equity futures charts show TD9 bottom patterns that should take price to their respective OUL’s. A close above the OUL’s would suggest a run for their TD9 breakdown areas. A close above their TD9 breakdown levels would suggest that a further rally is likely.

At present, market breadth for the 30-minute ES & NQ have bearish crossover conditions, meaning that more instruments are trading below profile vs. those trading above 30-minute profile and not until those conditions change, will price take out their recent highs.

The ES continues to find resistance at the top of its daily profile and RMI tops exist for the 2 & 4-hour time frames. If those RMI tops fail, that would suggest that price is attempting once again to take out profile resistance. Short of that, price could be pulling back to its daily OUL, 3715.

In the market breadth section of the newsletter, you will see that conditions are bullish for the daily and its 240 & 60-minute time frames, meaning that buyers may be able to fend off the sellers.

The market breadth section of the newsletter also shows that the NYSE A/D Oscillator is above its zero threshold level which indicates buyers are in control of the general markets, whereas the spot VIX index is trading above its 50-day, which indicates that sellers are in control.

All of these messages may seem confusing, but in the end, the combined meaning is one of a choppy market.

The ES had a 2-day consecutive rally and perhaps today will be day 2 of a consecutive move lower.

As of 7:54 a.m., we can see that gold is still finding resistance at its weekly OUL, alevel that price has not closed above since April 22nd. Silver formed a “sell the D point” pattern yesterday which should take price back towards its OUL and the daily gold chart has TD9 breakdown resistance at 1742.90. The GDX charts look very good, but the directional price of gold and silver typically correlate to the direction of the GDX. Patience is still warranted.

A market overview as of 7:31 a.m.

• The daily ES chart shows a confirmed “buy the D point” bottom that continues to find resistance of the top of its daily profile.

• 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 “buy the D point” pattern that should take price to the top of its daily profile, 11840.

• 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 and if price can remain above the top of its daily profile (1757) a run for its TD9 breakdown area is likely, 1861.70.

• The U.S. dollar index has formed a RMI top and with price below its OUL, a run for 109.64 is likley.

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

• The daily Silver chart shows a confirmed “sell the D point” pattern which suggests a run for its OUL, currently in the 19.67 area.

• The daily Copper chart shows a TD9 bottom with a consolidation within its daily profile and its TD9 breakout and breakdown areas.

• The daily Crude Oil chart shows a TD9 bottom pattern which has taken price to its TD9 breakdown area, 88.70.

• The daily Natural Gas chart shows a confirmed “buy the D point” pattern with price taking on OUL resistance (6.94) that if closed above will signal a run for 7.37.

• The daily chart shows a TD9 and “buy the D point” bottom pattern with price consolidating within its daily profile.

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 has a TD9 bottom and with price above its OUL, a run for its TD9 breakdown area, 18905.

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

Markets in Europe are trading lower as of 7:04 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 with price above its OUL a run for its TD9 breakdown area, 13111.38 is likely.

Major currencies shows that as of 7:05 a.m.:

• The U.S. dollar index has formed a RMI top and with price below its OUL, a run for 109.64 is likley.

• 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 7:12 this morning:

As of 7:13 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 that continues to find resistance of the top of its daily profile.

• The 30-minute has formed a TD9 bottom pattern that should take price to its OUL.

As of 7:14 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-minute has formed a TD9 bottom pattern that should take price to its OUL, 11606.

As of 7:16 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-minute has formed a TD9 bottom pattern that should take price to its OUL, 30257.

As of 7:17 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 and if price can remain above the top of its daily profile (1757) a run for its TD9 breakdown area is likely, 1861.70.

• The 30-minute has formed a TD9 bottom pattern that should take price to its OUL, 1764.

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 closed above its zero threshold level which suggests that buyers are in control of the general market.

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 7:21 a.m.:

As of 7:22 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.

As of 7:24 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 a confirmed “sell the D point” pattern which suggests a run for its OUL, currently in the 19.67 area.

As of 7:25 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 and its TD9 breakout and breakdown areas.

As of 7:27 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 which has taken price to its TD9 breakdown area, 88.70.

As of 7:28 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 confirmed “buy the D point” pattern with price taking on OUL resistance (6.94) that if closed above will signal a run for 7.37.

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

• Wheat is consolidating wtihin its new daily profile.

• Soybeans will complete a TD9 bottom pattern today.

• 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 and with price above the top of its daily profile, a run for the 2460 area is likely.

As of 7:14 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 with price consolidating within its daily profile.

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