Market breadth bottomed-out in the middle of the week, as expected, and the SPX bounced off the projected target low. The upside target for this week is 2875, and the index will remain on track to achieve this target as long as it trades above the CIT Cloud and the 1 x 1 angle:

The CIT Waves indicator at the bottom gives additional clues about the state of the market. First, there was a positive divergence at the end of June, when the downswing exceeded the duration of the preceding upswing but didn’t break below the lows. Second, the current upswing needs to exceed 6 bars and/or make a new high to confirm that the July uptrend remains uninterrupted.

As mentioned above, market breadth is rising from oversold levels and, at the current rate, has 2-3 days before getting overbought again:

Here are the monthly CIT pivots for SPX.

Pivot: 2825, S1 – 2787, S2 – 2750; R1 – 2862, R2 – 2900

The projected trading range for next week for SPX is 2800-2875.

Oil found support at the projected low target and just above the 63.6 – 64.5 support zone. The trend is down, and the action from the last two days should be viewed as a counter-trend swing.

The projected trading range for oil for next week is 63 – 68.

Monthly pivots: P - 68.4, S1 - 65.9, S2 – 63.6, R1 – 71, R2 - 73

The downtrend for GOLD continues and our long-term target remains at 950.

Monthly pivots: P - 1224, S1 - 1200, S2 – 1177, R1 – 1250, R2 - 1270

The projected trading range for gold for next week is 1160 - 1220.

Most G6 pairs traded around their projected targets providing ample swing trading opportunities.

USDJPY bounced off the projected low but remains on a sell signal.

The projected trading range for USDJPY for next week is 109.75 – 111.5.   

EURUSD traded all week long around the projected low target and finds itself in the middle of a counter-trend upswing. The long-term trend is down, and there’s heavy resistance above 1.15.

The projected trading range for EURUSD for next week is 1.128 – 1.15.

GBPUSD bounced off the low target and is making a timid attempt at a bounce.

The long-term trend is down, suggesting that rallies should be sold.

The projected trading range for GBPUSD for next week is 126 – 128.5.

Last week we observed that USDCAD is getting overbought. The pair unsuccessfully tried to break above resistance just a few pips below our upside target and finished the week with a small loss. USDCAD remains range-bound.

The projected trading range for USDCAD for next week is 1.298 – 132.

AUDUSD broke below the downside target but reversed immediately and finished the week firmly above the pivot line.

The projected trading range for AUDUSD for next week is 0.72 – 0.735.

USDCHF remains range bound between 0.98 and 1.00

Charts, signals and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8