Equity Market outlook for the second half of the year
Snippet from July 21, 2016 Pivotal Events
Our July 7th ChartWorks and Pivot noted that Gold Stocks had registered an Upside Exhaustion. The HUI accomplished an outstanding swing in the Weekly RSI, on the run from 99 in January to 273 on July 11.
So far, the correction has been to 249 and today’s rally (July 21) seems to be based upon the decline in the general stock market.
Our November study reviewed the conditions needed to end the bear and set up a cyclical bull market. All, hopefully, in place by around January.
One of these was that gold stocks would begin to outperform the bullion price.
That worked out and the HUI/Gold has accomplished a big momentum swing and has begun a correction.
This is a natural correction. In looking out to the fall, the sector could be vulnerable to problems in the credit markets.
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