The ORD Oracle, June 12, 2017

SPX Monitoring purposes; Sold long SPX 5/23/17 at 2398.42 = +1.76%;  Long SPX 5/17/17 at 2357.03.
Monitoring purposes GOLD: neutral.
Long Term Trend monitor purposes: Neutral.

Last week the three day average of the equity put/call ratio reached .56 and in an area where short term tops can be expected.  The FOMC meeting is Wednesday and could set the stage for a bearish setup.  It still appears a top is forming in this range but no setup has been triggered.

FOMC meeting is Wednesday and could have a short term affect on the market.  A high volume “Spinning Top” (bearish) formed on Friday and most high volume highs are tested and if tested on lighter volume would imply resistance.   If the market does test Friday’s high, it could complete a small “Three Drives to Top” that started in early June and complete a larger “Three Drives to Top” that started back in early March.  A bearish setup could be for the SPY to hit a higher high and the VIX to make a higher low.  The FOMC meeting Wednesday could produce the validity to help set this trade up.   Still watching the developing “Three Drives to Top” to completed and a pull back to 2300 SPX range is possible.

Friday the Advance/Decline percent and Up down volume percent indictors broke to new recent lows as GDX made a higher low, suggesting at some point GDX will break its previous low (which comes in near 22.00 range).  Last Tuesday GDX had a high volume exhaustion day, which puts a short term stop to the uptrend.  We notice that the high of Last Tuesday was not touched and in most cases high volume highs are tested at some point opening the door for a test in the coming days.  Market may move sideways here.  Seasonality predicts a low in July for Gold and market could back and fill until then.  Bigger trend remains bullish and when next low is found, the next uptrend should be lasting.  Will keep our powder dry for now. For examples in how “Ord-Volume” works, visit www.ord-oracle.com.   New Book release “The Secret Science of Price and Volume” by Timothy Ord, buy on www.Amazon

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