We project that over the next month a continued sideways consolidation (yellow) should hold true and peak, before finding a new trend.
Captial flows to the US markets are bullish, and away fromt he US markets are predict a temporary bearish picture.
As you can see, the markets are consolidating as they move sideways.
Any move near or at the top is a sign to traders to take profits and place shorts. A move nearing the green line is a time to consider placing long positions as for when the markets rise again to test the top of the trading range.
Without a doubt the markets are preparing to breakout.
The current poitical battle in the US forces the markets to question the direction in the short term and but the commercials are currently hedging the long side with more shorts in the futures market.
Internationally, the Brexit battle and the Hong Kong/China battle are both looming large on the markets upward growth. We must remain patient because the markets never lie. The market prices in politics, the economy, fear, greed, and every emotional decision made by a billion investors worldwide.
I will update you as we get closer and break through to the top or bottom of this trading range!