8/6/2019 All major averages are now Overbought on their Daily Charts.

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July 7, 2011 – Al l maj or averages are now Overbought on t heir Dai ly Chart s.

The overbought conditions on the daily charts for the major averages (accept the SOX) and a

new all time high for the Dow Transports sets an extremely high bar for earnings season, whichbegins next week. The yield on the 10-Year US Treasury is between its 50-day and 200-daysimple moving averages at 3.092 and 3.139. Gold is back above its 50-day SMA at $1519.9.Crude oil remains above its 200-day SMA at $93.37, which is the only support I have. The euroclosed Wednesday below its 50-day SMA at 1.4387. Key support for the major averages aretheir 50-day SMAs, which lies at 12,379 for the Dow Industrial Average.

10-Year Note – (3.102) The yield on the 10-Year US Treasury is back below its 50-day and 200-daysimple moving averages at 3.092 and 3.139 with my quarterly risky level at 3.052. Today’s value levelis 3.215 with a weekly risky level at 2.957.

Courtesy of Thomson / Reuters

8/6/2019 All major averages are now Overbought on their Daily Charts.

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Comex Gold – ($1528.8) Gold popped back above its 50-day simple moving average at $1519.9, sothere’s potential to weekly and monthly risky levels at $1537.2 and $1547.9. Daily and semiannual

value levels are $1492.9 and $1469.9. We need a weekly close in July above $1547.9 to inflate thebubble further as semiannual and quarterly risky levels are $1644.8 and $1655.1. 

Courtesy of Thomson / Reuters

Nymex Crude Oil – ($96.83) The 200-day simple moving average is $93.37 with weekly and dailypivots at $96.28 and $96.94 and my annual pivots at $99.91 and $101.9.

Courtesy of Thomson / Reuters

8/6/2019 All major averages are now Overbought on their Daily Charts.

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The Euro – (1.4312) Monthly and quarterly value levels are 1.4326 and 1.3728 with a weekly pivot at1.4326, and daily and semiannual risky levels at 1.4481, 1.4752 and 1.4872. Under the 50-day 

simple moving average at 1.4387 is risk to the 200-day at 1.3899.

Courtesy of Thomson / Reuters

Daily Dow: (12,626) The daily chart is overbought with the 50-day simple moving average at 12,379and a daily risky level at 12,672. My weekly and annual value levels are 11,974 and 11,491.withmonthly, quarterly and annual risky levels at 13,155, 13,839 and 13,890.

Courtesy of Thomson / Reuters

8/6/2019 All major averages are now Overbought on their Daily Charts.

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S&P 500 – (1339.2) The 50-day simple moving average is 1317.4 with a daily risky level at 1345.2. Myweekly value level is 1280.4 with monthly and quarterly risky levels at 1422.8 and 1467.0.

NASDAQ – (2834) The 50-day simple moving average is 2764 with a daily risky level at 2845. Myweekly value level is 2663 with monthly, quarterly and annual risky levels at 2975, 3109 and 3243.

NASDAQ 100 (NDX) – (2379) The 50-day simple moving average is 2320 with a daily pivot at 2381.My weekly value level is 2220 with monthly, annual and quarterly risky levels at 2483, 2590 and 2630.

Dow Transports – (5566) The 50-day simple moving average is 5345 with a daily pivot at 5534. Myweekly and annual value levels are 5193 and 5179 with monthly, quarterly and annual risky levels at5736, 6112 and 6131.

Russell 2000 – (845.23) The 50-day simple moving average is 821.32 with a daily risky level at850.59. My weekly and annual value levels are 799.61 and 784.16 with monthly, quarterly and annual

risky levels at 924.95, 930.83 and 978.58.

The SOX  – (411.79) The 50-day and 200 day simple moving averages are 422.06 and 414.28 with adaily pivot at 409.98. My weekly value level is 388.97 with monthly and quarterly risky levels at 482.54and 493.22.

Equity Fundamentals – leaning towards overvalued• 48.9% of all stocks are undervalued / 51.1% of all stocks are overvalued• Two sectors are undervalued with Basic Materials the cheapest undervalued by just 2.7%• Fourteen sectors are overvalued – Transportation by 11.0%.• P/E Ratios – Range from 22.4 times for Aerospace to 57.4 times for Oils-Energy.

Definition of MOJO – This is my term for technical momentum. I use what’s called “12x3x3 slowstochastic readings” from daily, weekly and monthly charts. The scale is zero to 10.0 where above 8.0is overbought and below 2.0 is oversold.

Richard SuttmeierChief Market StrategistValuEngine.com(800) 381-5576

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