A quick and simple visual on 2 of our primary markets of interest.
SPX and the general US stock market are bouncing after dropping early. The market gapped down yesterday and a rise to fill the gap would not give a bullish all-clear to the market. As noted in NFTRH 414 and I believe last Friday’s update, the market needs to get above the SMA 50 and then make and hold a higher high to last Thursday’s high in order to get bullish.
HUI on the other hand has a little downside gap, which it is just about filling. We have talked about the potential to bounce between 230 (+/-) and 260 (+/-) and if Huey is going to bounce, the gap fill would be the place to do it because there is also a trend line there. The favored correction target continues to be in and around the SMA 200 (currently 199.78).
