• Good Morning, everyone, and welcome to Tuesday morning. .
• It's Stephen Whiteside here from theuptrend.com. .
• In the premarket this morning, things are fairly quiet. .
• Stock index futures are slightly below fair value. .
• DOW futures currently down 60 points. .
• So far, it looks like we're going to have a fairly quiet open on Tuesday morning. .
• Now, sometimes markets can be highly .
• correlated, and that means that they move in sync with each other. .
• The market that we watch the closest for .
• correlation is the correlation between the S&P 500 and the VIX. .
• We expect if the VIX is going down that the S&P 500 will be going up. .
• If the VIX is going up, we expect the S&P 500 to go down. .
• Now, another area of the market that has a strong correlation is the correlation .
• between the US dollar index and the stock market and the price of gold. .
• Now, not all correlations, they're not guaranteed. .
• Sometimes they work, sometimes they don't. .
• Now, when we go back to the month of February, we had a nice big move up in the .
• US dollar index, and we're seeing the start of that now. .
• The US dollar index has been on a buy signal for a couple of weeks now. .
• If we can continue to move higher from here, the last time that we rallied like .
• this, we saw the S&P 500 pull back sharply through the month of February into March. .
• We also saw the price of gold pull back as well. .
• Now, so far, the price of gold has already started to pull back. .
• It's down again in the premarket this morning. .
• So that correlation is working. .
• What hasn't started yet is the move down in the stock market. .
• So no guarantee that the US dollar index .
• is going to be able to continue to move higher from here. .
• But if it does, we may see a negative .
• effect on the stock market and a continued negative effect on the price of gold. .
• Now, the VIX traded in the channel on Monday, a close above 1807 would give us a .
• buy signal, and we would expect that to be negative for stocks. .
• Now, once again, it was technology stocks leading the market higher. .
• I didn't notice it that much on the Nasdaq 100, up just a third of a %. .
• It was more visible looking at the chip sector with the stocks .
• trading higher and the spider, Semicondactor ETF up over 1 % on the day. .
• Looking at the S&P 500, we barely moved yesterday. .
• Our next mathematical target on the SPY is 421.88. On the index itself, it's .
• 421.75. What the market is really watching right now is not that number. .
• They're watching the big round number of 4200 or 420 on the SPY. .
• The market is having trouble with that level at the moment. .
• If it can punch through it, and we got .
• pretty close to it yesterday, we can get up to 4,218. .
• 75 on Tuesday. .
• Looking at the DOW Diamonds, we traded down into the channel, dipped below the .
• lower channel line but did not close there. .
• On Tuesday, we're looking for a close .
• below 332.32 to give us a new sell signal for the DOW Diamonds. .
• Now, Nike continued to lead the DOW lower .
• yesterday, but we also saw Walgreen Boots put in a new low. .
• Now, this was an interesting move. .
• We're looking for support at 31.25. The high of the day was actually 31.27, .
• and we closed at 3,1.19. So the stock is really trying to hold on to that 31.25 .
• level, even though we made a new low yesterday intraday. .
• We, of course, care about where things .
• close and it closed right up at that level of the 31.25 area of support. .
• Now, the Canadian market didn't trade on Monday. .
• On Friday, we traded up .
• closing just above the lower channel line looking for a close on Tuesday above .
• 31.36. Now, US bank stocks were up yesterday. .
• Canadian bank stocks pulled back on Friday. .
• Canadian banks start reporting earnings .
• this week, so that could add to the volatility in the banking sector. .
• On Friday, Canadian energy stocks ended the week on a buy signal. .
• On Monday, we saw a small pullback in US energy stocks down less than half a %. .
• Still waiting for a buy signal for this sector in the US. .
• Looking at gold stocks on the TSX, they .
• traded up on Friday, filling the open gap and then closing higher on the day. .
• On Monday, we saw the GDX pull back, having an inside day. .
• So a day of indecision for gold stocks in the US on Monday. .
• Let's finish off today's presentation looking at commodities. .
• The price of copper is trying to hold support here. .
• It's been on a sell signal for a few weeks now. .
• Then we had an inside day for the GLD and the SLV and the USO on Monday. .
• So no change in trend for gold or silver. .
• And the price of crude oil is still on a buy signal here treading water. .
• We need a close on Tuesday below 62.99 to give us a sell signal for the USO. .
• Looking at gasoline, new high for this move on Monday. .
• And then looking at the natural gas, big .
• pullback on Monday, trading back down to the upper channel line. .
• Looking for a close on Tuesday below .
• $6.71. Okay, folks, that is all for this morning's presentation. .
• So far, it looks like we're going to see a quiet open at 9:30 Tuesday morning. .
• Have a great day. .
• Next time you'll hear my voice is on Wednesday morning. .