Thank you all for watching my videos. If you do want to support the channel, go to www.kindlereport.com wavetech sign up for our software, you get market grid on 165, individual stocks and indices. You also will get 16 500 buy and sell signals on our entire database. I thank you so much for supporting the channel. Those of you who already signed up. Thank you so much welcome everyone to the kindle report, where i share my 41 years of experience to help you manage your portfolios and protect your wealth. Remember to subscribe like and share these videos. Well folks, we started the week on a very negative note. This has actually caused a lot of issues we saw our database actually generate about 2 800 cell signals only 600 buy signals, so there’s a definitely a negative rotation. I will go through all the details here in just a few minutes. We are also seeing a pretty sharp rebound overnight if you’re, watching the market grid on the nasdaq. We actually got an stx buy signal, so we’re up about three quarter percent on the nasdaq up about .54 on the s p, and we went down to some of those key levels that i talked about yesterday. The nasdaq exceeded a little bit, but the s p went almost exactly to the numbers. I discussed i’ll go through all those details here in a few minutes in the technical section overnight. This bid that we’re seeing is being generated, i believe, by short, covering ahead of powell’s speech tomorrow.
I don’t have any real high expectations other than hearing more of the same rhetoric that they put out all the time. I suspect that he will say something about the stimulus because, as i’ve talked about for the last eight months, is that the fed and the treasury is a team and it’s not supposed to work that way. But it is definitely working that way. Right now – and we have janet yellen in there – actually screaming and yelling just about everything from bitcoin to get more stimulus, they’re really freaking out on the bitcoin situation, and it is interesting that there’s a big drop in bitcoin overnight after her comments, i’m, not sure what’s Driving that, but it did hit some of the objectives that i talked about in the live stream last week, so i’ll cover that in the live stream on wednesday as usual. But as we look to tuesday there’s about 200 earnings reports coming out there’s plenty to digest there, some real estate reports, nothing really material. I don’t think that will affect the markets. Big, maybe the housing starts number might have some relevance. I don’t think market participants are going to be paying a lot of attention to that metric tomorrow. As we move through this week, we still have a lot of earnings that’s going to keep driving sentiment. We continue to come in better than expected. In most cases last i checked was about 82 percent of the reports are coming in better than expected markets pay attention to these numbers.
This is not a big driver at the current moment. What is driving the market is expectations for stimulus and they’re trying to move this thing a little bit forward, but, as i said, nothing gets done. Market participants are really looking hard for something to grab onto i’ve talked to you several times over the last six or seven sessions that i think that apple and tesla were rolling over. We saw a big breakdown with tesla down over eight percent. Yesterday, apple down three percent – and the best thing i can do for you right now is come to the live stream on wednesday and i’ll cover those companies in detail, but they’re definitely have broken their patterns and are in the absolute best case. For these two stocks is that they will enter a high level consolidation and hit some support levels. So far, they’ve come close to those levels. There could be some more downside, but with the bounce in the nasdaq overnight, i suspect, we’ll see some stabilization as far as those stocks go, but the big story today is going to be jay powell’s. Testimony like i said i don’t see a lot coming out of that. It appears that somebody might know something because we’re seeing this big rally, whether there’s going to be announcement by a treasury or who knows what’s going on as i’ve talked about before anytime. The market has any weakness. I posted this on my twitter account that somehow janet yellen or somebody comes in and makes a comment to support the market.
The unfortunate part is that’s not going to work long term. I think market participants are starting to see some of the dislocation that’s happening in jobs and the traction we’re not getting. I read a story earlier tonight about how manufacturing is not coming back as good as it should that companies were really good about shutting things down, but they did not see how much demand was going to come back after they turned the economy back on so there’s A lot of issues there and that’s going to cause inflation and just to go on here is that that’s. Why we’re seeing the tenure up at 1.’, almost one four, probably on its way to one eight two percent i’ve talked about this a lot and we’re also seeing the yield curve. The five versus the thirty just go through the roof i’m just going to mention these. In the opening comments, i’m not going to cover them tonight, but i will go through all that detail also in the live stream. So let’s go ahead and dig into the charts, see what they’re telling us for tuesday. As i cover the wave tech database tonight. As i mentioned, opening comments, we had 2 800 sell signals on the short term models about 700 buys, and this is a big negative rotation. It took the percent bullish from 49 to 42 in the previous downtick. We got to 45 and i’ve talked a lot about this 42 level, so this is the critical level if we see further liquidation tomorrow night.
This is going to signal that there’s going to be more downside, action and there’s going to be a minor correction, come out of this phase we’re in. I believe that the database is starting to tell us something. As i mentioned several times, it was one year ago today that the market started to break down sharply now we’re, seeing some strength overnight, i’m, not suggesting we’re, going into a collapse we’re starting to see the selling level at these higher levels, which is somewhat concerning the Short term database has been struggling to get really a lot of traction again. I won’t go through the entire history, but it did get up to 90 percent and it dropped from 90 all the way down to 8 back in june, when we saw that that big sell off back then, since then, we’re seeing a more stable environment and we’ve Been waffling between 27 and 72 percent, which is actually very normal from that standpoint, we’re just not able to get any further traction here and the markets look like they’re really struggling at these levels. We review the s p 500. The futures are up 13 handles right. Now they were up over 21 handles so we’re, seeing a little bit of selling coming in as we’re coming into the london opening, and what we’re seeing overall in the pattern, though, is that we moved down to the 21 day moving average. I discussed this yesterday that that was at least the initial target.
Yesterday’S low on the futures was 38.61. The 21 period moving average is 38.57, so we get right to that we’re, seeing a bit of a bounce, as i mentioned as we look at tonight’s action and the market grid we’re looking at an s1 so far, we’ve traded toward r2, so we’ve already had an S1, r2 overnight r2 will be very strong resistance at this level and depending on how we trade in the first several hours. If we take out the unchanged level, we’re likely to see a retest of s1 and move down toward the 3861 and the possibility of seeing even further lows, as i mentioned a minute ago in covering the database, we did see a substantial amount of selling. And this is concerning what this tells us that the internals of the markets are starting to crumble on the short term basis on a longer term basis, it’s, still very positive, there’s, still long term trends in place so i’m, not predicting any major top at the moment. Just because of the position of the intermediate models – and they continue to hold now, if we see some weakness this week again and we close lower, then we might see some liquidation starting in the intermediate database. But until i see that the underlying trends are still very positive, as as i’ll show you here when we go through the spx, so looking at spx yesterday, looking at the extreme low that was reached yesterday, it went right to the stx number, which was 38.
74, the Low was 38.74, it was a spot on hit on the extreme projected downside. For yesterday we didn’t see much of a bounce on the cash from that went out. Basically, at the lows of the day, this bounce that we’re, seeing overnight in the futures, is actually setting up one of those where you sell the higher opening and you’re going to retest the low. So it’s going to be interesting to see how much of the strength overnight we can hold into the u.s open and if it doesn’t hold the strength and we get through unchanged on the futures overnight. We could see even a possibility of coming in lower i’m expecting to see a bid remain in this market and staying above unchanged as we look at today’s grid. You’Ll see that s1 is 38.69, so there is some support right there, next level, 38.61 and then 38.52. If there is a penetration of yesterday’s low, this is going to be your target level, so look for at least a r2, which would be 3891 and s1 number, which would be 38.69, and i still believe, there’s some vulnerability on the downside. If we get through 38.69 we’ll see lower prices next market i’ll review is the nasdaq. We look at nasdaq futures. Yesterday we got down to the 40 day moving average at 13 205. The low was 13 215, so we were about 10 handles off of that level. We did penetrate it overnight, but then it’s reversed and right now we’re up 0.
5 on the nasdaq at 12 089. So as we look at the market grid for today, the s1 level is going to be the most likely target, so s1 possibility of getting to r2. If we get through r2 could be a rally back to r3, i think r2 is likely to do it. So an s1 r2. For today i mentioned also in the opening comments that we got an stx buy signal and what that means is typically when it closes below the grid. Yesterday’S stx number thirteen thousand three forty five, the close with thirteen 13224 below that number we’ll get a one to three day rally back into the grid and as we look at today’s grid, usually that it’ll go back to an r2 number and whatever the r2 number Is for tomorrow will continue to move up in this pattern, most likely back toward the 13 604 level, which is the bottom side of the 10 period, moving average we’re likely to just stay sandwiched between the 40 period moving average at 13, 221 and the 10 day. Moving average at the 13 604 level, the final market that i’ll cover tonight is gold. We did see a sharp rally. Yesterday, we traded above some of the numbers that i talked about. We did trade into that 18, 12, 18, 22 level, we’re, seeing some strength overnight. 1810, the high’s been 18 15.. There is a fair amount of resistance if we just look at the market grid for today, we’re going to see that we’re trading above the 10 per moving average at 1805 and the 21 is right at 1821.
We look at r2. Is 1821.? The pm2 is at a minus point, one two, so there’s still about only a forty percent probability to stay under that eighteen, twenty one level, but coming from the sharp rally that we’ve seen in the last three days, this will most likely be the highs around this 18 23 level. We should see a retreat back into the 1801 level at least get back below the 1805, which is the 10 period, moving average it’s down right now at 0.15, not a lot of pressure down, but there’s still some basic pressure down, and even with this rally that We saw yesterday and a continuation right now, we’re, not seeing the ppms tick up, which is usually a negative sign. So i don’t see the the market moving a lot higher in this pattern. It could go back as high as 41 1841, but it doesn’t look likely at the moment. As i mentioned almost four days ago, we got that stx buy signal, and i was looking for two to three days on the upside and coming up toward that. 1790. 18. 10 level and we’ve actually done that and a little bit more, but i think it’s going to get tired up here and start to see a little bit of a retracement. Maybe we’ll set up a right shoulder and there’s a likelihood of the markets moving a bit higher. This will complete the video for today. Hey everyone thanks for watching.
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