Sunny Side of the Street
Sunday May 23, 2021
VantagePoint ai Prediction for Tomorrow
VP clearly projects the anticipated direction and magniture of tomorrow’s market. You can use any symbol; I trade the EMini S&P. My read of this clearly the market is poised for further move upward. All three moving averages are under the zero line and pointing upward, further confirmating the anticipated direction.
On my Facebook page (open Facebook and search for Sunny Harris) I post FREE predictions as well, often more frequently than Sunday nights. Who knows where the markets will really go, but it is elucitating to read the technicals and comments.
On 5/1/21 I posted: "I tho't the Dow would correct to 33,563. It beat that on 5/19/21 with a low of 33,473.80. The Fibonacci 61.8 extension from the March 2020 low is 33,329. We could still drop to that level. Note that SunnyBands lower-inner band was touched, but the move looks like it could correct to the lower-outer band at 33,053. Be wary.”
At this juncture I believe that the Dow will retrace back up to the 34,980 level, which is currently the top of the outside SunnyBands. VP suggests that tomorrow could be choppy, with it's gray line both above and below recent closes. It's very iffy right now with the Dow in congestion.
SunnyBands Implications
Dow Jones
S&P 500
The first thing I notice ("What is true?") about these two charts is that each has stalled in its progression both upward and downward. We are in another congestion phase.
The ES hasn't been able to best its Highest(H, 5) and neither has the Dow. In order for the ES to continue the march upward it will have to pass the 4185.50 mark and the Dow needs to break 34,450.
The DMA (DynamicMovingAverage) is flat with purple barely on top, telling me that the sideways market is likely to open back upward in the near future. Price is holding right around the DMA and is not approaching either set of bands.
| S&P 500 Attractors |
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Dow 30 Attractors |
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The ES shows an Attractor at 4181 and another at 4108. (+/-) These are the areas that would have to be transgressed to establish a new direction.
The ES pennant formation shown above reminds us that if price breaks out to the upside it could start a new trend in the direct of the flagpole.
Today the high of the market pierced the flag, but the close did not. We are now still waiting for more evidence. |
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The Dow shows an Attractor at 34450 and another at 33808. (+/-) These are the areas that would have to be transgressed to establish a new direction.
I also see a pennant formation stretching back to 5/10/21, which would say that the former direction would resume when the pennant is broken to the upside.
My guess is the market will break out of the combined pennant and attractor situation to the upside heading back up toward 35000.
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Fibonacci Retracements and Extensions
Fibonacci extensions from the big "Covid Crash" can tell us a lot about where the market might be going. There is an extension at 4293 which gives us an upward target, and below we have another extension, this time at 3828. If the market continues to correct, then my lower limit is 3993 and if it melts up it could blast through the Fib Line at 4181.
Gold
Gold is on its way back up, from the looks of the weekly chart. The wave structure looks like a 1-3-5 to the top and a 5-wave A retracement with a simple B-wave move back up.
It looks like it should turn back to the 1808 level and then bounce up to the 2000 level but current activity suggests folks are anticipating inflation.
Bonds
Bonds are no longer continuing straight down. @US has taken a bounce at the 154 level and then retraced a good part of it. It seems that it wants to wiggle a bit more, testing support at the 154 level and then march on upward. That's conditioned on inflation continuing, as it has during the Covid year. It seems that everything one wants to buy is far more expensive than it was before Covid. And yet, I think it is under-reported.
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