What to Look for This Week (June 27th)

Look for follow through from last week's rally. Stocks & Energy at turning points.

Hello my traders and investors!

In the week ahead, here’s what I’m looking for.

Stocks and Energy at Turning Points

Here’s what I’m looking for this week:

• US stocks to follow through on last week’s performance (see more below or watch the video).

• Natural gas, oil, and energy stocks to take a new leg lower.

• Chinese stocks to continue 2-month bullish move, with strength.

• More on Energy & China:

  • Oil is About to Collapse. Here’s How to Trade It (June 22nd)

  • Natural Gas Triggers Major Sell Signal (June 26th)

  • Chinese Stocks are Bottoming. Is the US Next? (June 26th)

Keep your ears out for good news - an end to the war, slowing inflation, or relief in energy prices.

U.S. Stocks Poised for Relief Rally

Stocks are poised for a relief rally and the market needs good (sic “great”) news to confirm any bullish move.

On last week’s rally, we saw significant breadth in the NYSE advance/decline line, on higher volume. This tells us the move is real, and you an expect buyers to step in on any pullback.

S&P 500, Daily

BUT, bulls beware: there will be a lot of supply zones up ahead (red circle), so look for the market to falter here.

Any short-term pull back makes for a great trading opportunity, up or down — just make sure you see candlestick reversals to justify entry.

This Week is Pivotal for Everything

The market is exhibiting significant strength following China’s bottom. Only good news could carry stocks higher.

Without good news, any reversal signals should offer major warning signs.

This week is especially important, because will finalize (or negate) monthly candlestick signals.

• If we see a rally in stocks, it will form another bullish reversal candlestick at Bollinger after last month’s long-legged doji.

• On oil and natural gas, a continued sell-off will result in bearish engulfings.

• The candlesticks finalize on Thursday, so we’ll know before the end of the week if these major reversal signals form.

Happy Trading 😊