I spelled low “Lowe” since Lowe’s is reporting earnings this week and that is likely to be a bit of a bellwether for market sentiment.

Earnings season is winding down and Lowe’s is one of the biggest, most important companies left to report.  They will release earnings before the open on Wednesday, 5/24/17 and expectations are very high.  Home Depot reported last week, beating both earnings and revenue estimates, and their stock price is down.  I’m so glad I am a technical trader, not focused on fundamentals…

The market continues to look for a catalyst for direction and it could be Lowe’s earnings, or of course, breaking news.  The president is on his first trip abroad and early headlines are positive (well, as positive as the media is capable of for this President…)

Looking at the technical patterns shows a high likelihood of the indexes heading down.  We were in a stagnant, sideways channel for about three weeks and then broke through to some lows last week.  The current pattern shows evidence of further lows to come, at least to $2350 – $2327 on the S&P 500.

Gold is still very bullish.  On very short time-frames, like the 10-minute chart, there is a very clear pattern taking us up to $1276 – $1294 in the very near future, probably 1-2 weeks.

Oil rallied last week, very strongly, but the overall pattern is bearish.  Watch ~ $51.50 as a key level for reversal down.

That’s it for this week.  If anything dramatic happens and the analysis changes, I will send a mid-week update.

Trade safe, use risk control and keep your winners big and losers small.

Stay tuned,

Dean Jenkins
Follow Me Trades LLC
Work: (360) 464-1083
dean@followmetrades.com