Following the June 21 Market Minute titled "The low has arrived", equity indexes continue to show a bullish stance. Models have been indicating since late April that the corrective low in the S&P 500 would occur in the second half of June. As that trough has now developed (June 16-20), upward pressure can be anticipated into July and early August.

Commodities, which trade in a parallel path with stocks, are expected to bounce back starting this week. Safe haven asset groups such as the US dollar, consumer staples and bonds, have already begun to sell off. This trend should persist into July.

Bottom line: The correction is over. Stock markets are expected to continue rising over the next 4-6 weeks. Commodities should also follow.

More research will be in the upcoming July newsletter.

By Donald W. Dony, FCSI, MFTA
www.technicalspeculator.com

COPYRIGHT © 2011 Donald W. Dony
Donald W. Dony, FCSI, MFTA has been in the investment profession for over 20 years, first as a stock broker in the mid 1980's and then as the principal of D. W. Dony and Associates Inc., a financial consulting firm to present. He is the editor and publisher of the Technical Speculator, a monthly international investment newsletter, which specializes in major world equity markets, currencies, bonds and interest rates as well as the precious metals markets.

Donald is also an instructor for the Canadian Securities Institute (CSI). He is often called upon to design technical analysis training programs and to provide teaching to industry professionals on technical analysis at many of Canada's leading brokerage firms. He is a respected specialist in the area of intermarket and cycle analysis and a frequent speaker at investment conferences.

Mr. Dony is a member of the Canadian Society of Technical Analysts (CSTA) and the International Federation of Technical Analysts (IFTA).

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