Hello Everyone,
After getting quite stretched on the daily charts last Thursday, the SPX/QQQ have been in a choppy consolidation range since. Today saw the major indexes lost ground: -1.1% for the S&P 500, and -1.8% for the QQQ Nasdaq 100, and the major indexes are now negative for the week save for the Dow Jones, which is basically flat. The 4100-ish area is support and continues to be defended. The market may be consolidating into an abc pattern with this being wave c. Seasonal weakness normally appears in late Feb into March which coincides with the CPI report (which will involve a new methodology for the the upcoming print).
Note: CPI data next Tuesday will be HUGELY IMPORANT
Precious Metals have been weak and continue to look that way: Gold sold off recently from a divergent high, and so far this little bounce looks like a bear flag or wave b. Silver is also weak and appears to be consolidating before another move to the downside. GDX found some initial support at its 50 day MA, however looks vulnerable.
have a great night,
Matt
