• SPX Monitoring purposes; Short SPX 8/2/17 at 2477.57.
• Monitoring purposes Gold: Neutral
• Long Term Trend monitor purposes: Neutral.

We have been showing the 21 MA of the Equity put/call which has reached .62 and has been a bearish sign for the SPX. Above is the 5 day moving average of the Total put/call ratio (Index and Equity Put/Call combined) and readings below .85 have been a bearish sign for the market (blue arrows). With the put/call averages in bearish levels, a correction in the market could last into the beginning of September. Also worth noting that Seasonality is bearish into October. Short SPX 8/2/17 at 2477.57. 

Today the McClellan Oscillator closed at -28 (below “0” and bearish) with the SPY up over a point and a bearish divergence. Today’s modest rally also tested yesterday’s high on lighter volume and another short term bearish sign. With the SPY modestly higher the VIX was also higher and a negative divergence. The sum total of divergences suggests a pull back in the SPX is possible. Not expecting a large pull back but 2440 range is possible. Short SPX on 8/2/17 at 2477.57.

There are three things on this chart that are bearish for gold stocks short term. The bottom window is the GDXJ/GDX ratio (Small gold stocks compared to large gold stocks). A bullish outcome is expected for both small and large gold stocks when this ratio is rising. As you can see this ratio has been declining since late June. The middle window is the GDXJ/GLD ratio. When this ratio is rising than a bullish outcome is expected for both gold stocks and gold. Since it is declining a bearish sign is given. There is also a comparison of GDXJ/GLD ratio to GDXJ and for a bullish case one would like to see GDXJ/GLD ratio outperforming GDXJ; which is not occurring here. The monthly charts remain bullish but the daily charts suggest more consolidation work is needed. The COT report for July 7 came in at 107K Short (on bullish side of neutral), July 14 came in at 73K short and July 21 at 74K short; both of which are bullish; July 28 came in at 103K short (bullish side of neutral).