Sunny Side of the Street

Sunday May 30, 2021

VantagePoint ai Prediction for Tomorrow

VP clearly projects the anticipated direction and magniture of tomorrow’s market. One can use any symbol; I trade the EMini S&P. My read is this: clearly the market is poised for further move upward, but how much?

All three moving averages are above the zero- line and pointing upward, though slightly, the long-term crossing over both the medium- and short-term , further confirming the anticipated direction.

Today I believe that the Dow will move on back up to the 34,980 level, which is currently slightly above the upper-outer SunnyBands. That level is challenged, however, by attractors at 34,810, 34,228 and 34,702. I wouldn't be surprised to see the Dow push on through those levels.

VP suggests that tomorrow should move to the upside, establishing new closing highs.

SunnyBands Implications

Dow Jones

S&P 500

Last week we noticed that both the Dow and the S&P had broken out of the pennant (triangle) formation signalling further movement to the upside. It has continued to unfold.

To register a further advance, the Dow still needs to break 34,908 and the ES needs to break 4,236. At this point, only a drop below 34,188 on the Dow and 4,108 on the ES would establish a concentrated down move to me.

If the markets continue on upward, I will move my "stops" up to 34,458 and 4,181 respectively.

The DMA (DynamicMovingAverage) is still turned upward with gold on top, confirming that the 7-day sideways movement broke to the upside as predicted previously. Price has now pierced the upper-outer SunnyBand and is likely heading toward the attractor above the market at 35,234 on the Dow and 4,293 on the ES.

S&P 500 Attractors

Dow 30 Attractors

The ES shows an Attractor at 4181 and another at 4108. (+/-) These are the areas that would be tested, if the new move decides to make a little correction on its path upward.

I'm watching for the ES to test 4,236 on the upside next.

The Dow shows an Attractor at 34,450 and another at 33,808. (+/-) These are the areas that would have to be transgressed to establish a new direction downward.

I also see a pennant formation stretching back to 5/10/21, which would siad that the former direction would resume when the pennant is broken to the upside. It was broken gently, and now the Dow is moving to the upside.

Fibonacci Retracements and Extensions

Fibonacci extensions from the big "Covid Crash" can tell us a lot about where the market might be going. There is an extension at 4,237 which gives us an upward target, and below we have another extension, this time at 3,915. If the market continues to advance it should at least get to the 4,237 level. It's not far away.

Gold

Last time I said "Gold is on its way back up, from the looks of the weekly chart. The wave structure looks like a 1-3-5 to the top and a 5-wave A retracement with a simple B-wave move back up." The move this week has been decidedly to the upside, in fact sharply. It is now touching the upper inner SunnyBand which could provide some resistance to this week's upward activity. If not, the on it goes to the upper outer band which is at 1,909.

It looks like it should turn back to the 1,808 level and then bounce up to the 2,000 level. Current activity suggests folks are anticipating a bit of inflation.

Bonds

Bonds are no longer continuing straight down. @US has taken a bounce at the 154 level and then retraced a good part of it. Now it is making progress toward the DMA, which will push it upward and gold on top. That's a long signal. That's conditioned on inflation continuing, as it has during the Covid year.

The DMA_H is under the zero-line and has turned green, signaling upward movement since 4/22/21. Typically this configuration is followed by the gold DMA line crossing over the purple, telling us that the trend is up.

As for inflation, it seems that everything one wants to buy is far more expensive than it was before Covid. And yet, I think it is under-reported.

If You Got this Free Newsletter from someone else and would like to Opt-In, and join us, click here.

Products

All subscribers to my Sunny Side of the Street newsletter are eligible for a 10% discount on my products. Call if you are interested.

Consulting/Mentoring - There is nothing that makes me happier than my students turning into great, profitable traders. I love to help new traders, and intermediate traders who are in a slump.

"Thanks very much; I do like hearing from you [, Sunny]. Thanks to SunnyBands I now have a net worth above $1.25 Million." -Don T.
[Editor's note: Don started 3 years ago with a $25,000 account. And, he told me yesterday that his account is now well over $2 Million.]

SunnyBands - SunnyBands are a extension of my DMA. The two lines above and two lines below the purple and gold DMA alert me to where the market is going. They are constructed from ATR bands on either side of the DMA.

DMA_H - Sunny"s DynamicMovingAverage in histogram format, using sophisticated math to smooth out the whipsaws.

Consulting Packages

Sunny has been teaching others to trade almost as long as she has been trading. Helping struggling novices over the hurdles is a passion of hers. Sunny has won awards for her teaching and consulting, being #1 in several categories. Sunny can teach you how to use TradeStation & MultiCharts and EasyLanguage and PowerLanguage, TC2000, VantagePoint, NinjaTrader, Genesis Navigator, and MetaStock so you don’t spend months struggling on your own. If you have a concept you want programmed, she can do it for you or teach you how to do it yourself. Click Here.

Strategies, Indicators & Custom Programming

We provide a wide range of software programmed by Sunny for her own trading. We are not a churn and burn shop that puts out lots of indicators for sale, just to have products to sell.

Each of these unique products is available to help others in their quest for profits. And, they are used by Sunny in her own daily trading. The software includes indicators that make trading smooth and easy, and strategies that can even be automated to provide hands-off trading. Click here for a full list, descriptions, charts and prices.