CNBC EUROPE SQUAWK BOX
LET’S LOOK AT THE S&P 500 INDEX DAILY CHART
This trend is exactly following the roadmap for a bear trend. When it started down in May I indicated the rally would not exceed 3 or 4 days until an exhaustion was in place because that is how this market trends. Then the next rally would be 7 to 12 days and that also seems to be following the pattern of trending for a bear trend. Last report I indicated the 15th was a low for a rally of 7 to 12 days and would likely go up into the 30th for a high. It appears to have done just that but I was also looking for a marginally higher high above the 6 day rally to complete this move up. So there could still be a few days left to the rally but the next move is down to test the July low or move marginally below that low to set up the next larger sideways pattern before the final leg down.
LET’S LOOK AT CRUDE OIL-WEEKLY CHART
Our forecast called for the top and a run down to 123 for a bounce. It went to 120.75 but considering the momentum of the move down that would be normal. The rally or bounce was only a day and a half and should be larger at three or four days but the next stop is 112 or 3/8 of the range of the bull campaign. Then there should be a much larger rally. But reviewing all the commodities and metals they all look like significant tops are in place.
The problem, as I’ve been saying for the past 9 months, is not inflation but deflation and these commodities are starting to reflect that circumstance as are the vaporizing assets of the western financial systems.
Disclaimer: All the reports and content in the entire McLaren Report web site (including this report) are for educational purposes only and do not constitute trading advice nor an invitation to buy or sell securities. The views are the personal views of the author. Before acting on any of the ideas expressed, the reader should seek professional advice to determine the suitability in view of his or her personal circumstances.