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Friday, May 24, 2019

A quiet Friday ahead of a long weekend as the Dow gained 95 points on light volume.  The advance/declines were 2 to 1 positive.  The summation index is moving lower.  Less noise from the trade war today but it will always be in the background it seems.  The VIX remains above the 15 level so it is still a time to be careful.  RUT has managed to hold the 1500 level for now.  My view is that the stock market remain in a precarious situation and caution is warranted.  I'm still looking to purchase some SPY June puts if the opportunity presents itself.  GE was off 1/8 on light volume.  Gold was off a bit and the US dollar was lower as well.  The XAU and GDX had slight fractional gains on very light volume.  Still no love for the gold shares.  Mentally I'm feeling OK.  The short term technical indicators remain oversold for the major stock indices.  There are some potential positive RSI divergences for a few of the indexes.  We would have to see a rally sooner rather than later for the divergences to pan out.  It isn't out of the question but I'm remaining with my bearish tilt for now.  I'll recheck the charts over the long weekend and determine what course of action to take from there.  Plenty of time in the June option cycle.  Asia was mixed and Europe higher last night.  It's Friday afternoon and time for a break. 

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