Jim welcomes back Louise Yamada CMT, Managing Director of Louise Yamada Technical Research Advisors. Louise comments that the market broke out technically in July, and this could lead to the next target of 2400 on the S&P 500. She concedes that a false breakout is a possibility, and to watch for support levels to hold. At the moment, the current market action looks like a normal consolidation. She also notes there is a current divergence in Dow Theory between the industrials and the transports, but a confirmation could take some months to occur. Louise looks for oil to stabilize in the $40 range, and if it drops below $36, then the pattern is aborted. Gold has moved easily past its prior $1200 resistance level, and now is holding well above its $1300 support level. She believes gold needs some time to digest its large move this year. Also in this segment, Ryan Puplava has this week’s Market Wrap-up, and Marc Chandler from Brown Brothers Harriman discusses the currency markets with Jim.
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