Sunday June 6, 2021
VantagePoint ai Prediction for Tomorrow
VP clearly projects the anticipated direction and magniture of tomorrow’s market. One can use any symbol; I trade the EMini S&P. My read of this: clearly the market is poised for further move upward, but how much?
All three moving averages are over the zero- line moving upward, confirming the anticipated direction.
Today I believe that the Dow will move on back up to the 34,980 level, which is currently slightly above the upper-outer SunnyBands. That level is challenged, however, by attractors at 34,810, 34,228 and 34,702. I wouldn't be surprised to see the Dow push on through those levels.
VP (VantagePoint ai Software) suggests that tomorrow should move to the upside, establishing new closing highs.
SunnyBands Implications
Dow Jones
S&P 500
Last week we noticed that both the Dow and the S&P had broken out of the pennant (triangle) formation signalling further movement to the upside. It has continued to unfold. Both now need to penetrate what I call "the back side of the triangle" in other words the place on the left that formed the high of the triangle. The NASDAQ, however, has not yet followed suit, and is still 282 points from making a new high. On the NQ the DMA has just turned positive, with gold now on top.
To register a further advance, the Dow still needs to break 34,908 and the ES needs to break 4,236. At this point, only a drop below 34,188 on the Dow and 4,108 on the ES would establish a concentrated down move to me.
If the markets continue on upward, I will move my "stops" up to 34,458 and 4,181 respectively.
The DMA (DynamicMovingAverage) is still turned upward with gold on top, confirming that the 7-day sideways movement broke to the upside as predicted previously. Price has now pierced the upper-outer SunnyBand and is likely heading toward the attractor above the market at 35,234 on the Dow and 4,293 on the ES.
The ES shows an Attractor at 4,119 and another at 4,298. (+/-) These are the areas that need to be achieved to set another upward move in place.
Last time I said: I'm watching for the ES to test 4,236 on the upside next. It's almost there, hovering at 4,232 tonight. Pretty good call.
The Dow has an attractor above it at 34,810 and another at 35,051. I'm expecting a test of those levels this next few days.
The DMA is pointing upward with gold on top, signaling further movement to the upside.
Fibonacci Retracements and Extensions
Fibonacci extensions from the big "Covid Crash" can tell us a lot about where the market might be going. The projections are to the upside, with Fibonacci retracements below the market at about 4,000 and above the market right at 4,300.
Gold
It looks like gold is heading for 2,000 to me. It has taken a pause this week, dropping below the upper-inside SunnyBand and then dropping further to hit the DMA lines in the center. The second day it hit the DMA again, but didn't move on down to the lower bands. That's possibly sending a signal of further move upward. Friday gold had a tiny move downward, but closed above the DMA. The only negative is that the DMA is now flat, not moving up or downward, so we don't yet have any information.
Bonds
Last week we looked at a weekly chart of bonds. Today I'm using a daily chart for a closer look. Bonds are inching their way upward. Not speeding along, but no longer moving downward either. The DMA line is gold on top, but the slope of the lines is pretty shallow. Price is above the DMA and touching the upper-outer SunnyBand, which is a sign of further strength. The DMA_Histogram (DMA_H) is mixed red and gold, illustrating the sideways movement. If they break above 158-22/32 then I will anticipate more movement upward.
The Covid Crash high, in a moment of panic, was at 185 and there is an attractor from July 2019 at 161. Those are targets to watch.
The DMA_H on the daily chart is above the zero-line with mixed red and gold, still signaling price advances.
As for inflation, 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.
IMPORTANT: Nothing in this newsletter is an offer to buy or sell securities of any type, nor is it advice to make any financial decisions. You are in charge of your assets and only you know your risk tolerance and how much you can afford to lose. Never invest/trade with money you cannot afford to lose. This information is intended as educational only.
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SunnyBands - SunnyBands are a extension of my DMA. The two lines above and two lines below the purple and gold DMA alert me to where the market is going. They are constructed from ATR bands on either side of the DMA.
DMA_H - Sunny"s DynamicMovingAverage in histogram format, using sophisticated math to smooth out the whipsaws.
Of course, my indicators work on any symbol, any time frame. In my own trading I use 1-min charts of the ES.
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