John Carter’s Premium Futures Update

In today’s video John Carter recaps last week’s close and what to look for in the coming week. Bonds spiked to a new high on Friday after some overnight action that increased fear in the markets, but they pulled back to finish the day with an extended reversal candle. Carter says the trend in bonds is still intact and this is not what a top looks like. The dollar index retains its strong uptrend keeping the Euro under pressure. Equity markets hit new relative lows last week, led by the Dow. Carter is looking for a short term bounce to the 21-EMA which would take us to roughly Dow 16,655. However, he states that even with a few days of rallying, a close below the 21-EMA on the weekly would be definitive sell signal for continued downside move. The Russell showed a bullish divergence, not making new lows while the other major indexes headed lower. The Nasdaq has been the strongest index overall. Carter believes the S&P will be the major tell for the overall market, with the possibility of making new lows in the coming weeks. Additionally, as we get to the second half of August, volume thins out and increased choppiness is likely to return to the market. Carter is bullish on gold, and cautious on crude oil. In his commodity review, Carter likes soybeans on support and live cattle on pull backs.