Momentum Divergence

First, apologies for not getting the weekly video out yesterday. I was extremely busy with "chores", and thus, was unable to get it done.

Below, I will list major points that I wanted to point out in the video.

1) The weekly VIX Williams %R was at extreme oversold levels around 97.

2) The stock markets are up about 12% in the past two weeks alone. This is the best two week gain since March 2000. What is not mentioned is the start of the dot.com bubble burst that occurred after that.

3) China practically his the 3750 number that I've been posting about. Now will be the test of that theory to see if it will start to pull back.

4) The U.S.A. and China are kicking off talks today.

5) Today, we got phenomenal new home sale figures. The market popped, but subsequently sold off. The close will be the confirmation to the weakness.

6) The MACD on the S&P 500 futures (/ES) hourly chart is not advancing, as price is. If you look at the chart below, notice how the price advanced, but the MACD is actually crossing below the previous level lows of last Friday. The next target for the MACD will be the lows of early last week.

Keep an eye on the /ES hourly MACD's. You want to see both the price and studies moving in concert.

Finally, there will be a lot of key economic reports out this week. The big daddy will be Q2 GDP numbers on Friday.