June 8

I will be out next week, so I will not be able to send out any signals real-time. What I will do instead is send out the retroactive signals at the end of the week. Obviously imperfect, but that's what it is.

Here are a few thoughts and observations as I look ahead to the possibilities for next week:

1. More upside on the 60-min System.

We had a buy signal on Wednesday morning (see: https://twitter.com/binve01/status/210369520337039360) from a sub-cycle bottom. And today that signal was further confirmed with a Cycle bottom. Which means that a significant divergence is required before a sell signal will be issued, which means I expect another high above this week's high.

That high doesn't have to come next week. In fact it would be very healthy if the market too a breather early next week to consolidate the reversal (and maybe set up an inverse head and shoulders).

But however it manifests, I don't think this upmove is over.

2. Potential bottom on the Daily System.

As I said on June 1 there were a large number of reasons why I thought the Daily sell signal was suspect. We made a lower low on Monday after last Friday's sell signal, reversal on Tuesday, and then traded up the rest of this week. As it stands, we now have a divergence at the Tuesday bottom over the last down sequence since May. The Daily system is obviously slower than the 60-min system so my indicators have not turned around to give a buy signal yet. But another week like this past week and it likely will.