• SPX Monitoring purposes; Sold long SPX 5/23/17 at 2398.42 = +1.76%; Long SPX 5/17/17 at 2357.03.
• Monitoring purposes Gold: Covered 6/6/17 at 23.78=loss 2.5%; Short GDX on 5/22/17 at 23.20.
• Long Term Trend monitor purposes: Neutral.

The Equity Put/call ratio closed at .51 yesterday and predicts a pull back to 2420 on SPX (242 on the SPY) which is a 61.8% retracement of the previous rally off of the May 31 low setting up another possible smaller “Three Drives To Top” pattern. The bottom window is the NYSE McClellan Oscillator which closed below “0” at -3.07 and showing weakness. If market does find support near 2420 on the SPX and another rally to new highs is obtained and McClellan Oscillator remains below “0” on the rally to new highs; a sell signal could develop. There are other possible roads to a sell signal also. 

Yesterday the Equity Put/Call ratio closed at .51. Readings <.55 predict market will be lower within five days 88% of the time with an average loss of .08%. Therefore today’s minor pull back may not be complete. A .08% pull back from the recent high on the SPX comes in near 61.8% retracement of the previous minor rally from the May 31 low possible creating another smaller “Three Drives To Top” pattern. Still watching the developing “Three Drives to Top” to completed and a pull back to 2300 SPX range is possible. 

The terrorist attacks in Europe are having a bullish affect on gold and gold stocks. There are still negative divergence present as the GDX/GLD ratio did not confirm today’s rally in GDX and yesterday’s closes in Advance/Decline % and Up down Volume % (second and third window up from bottom) did not show a bullish divergence and predict today’s strong rally in GDX. Never the less a strong rally was present. GLD (Bottom window) is testing the April high which is a resistance area. Covered GDX short on 6/6/17 at 23.80 for minor loss of 2.6%. Short GDX on 5/22/17 at 23.20.