For Monday, Aug 1, the market forecast is uncertain

We recommend selling leveraged equity positions and holding unleveraged positions.

Technical Comment:

Volume on Friday was higher than Thursday.  Higher volume combined with downward price movement suggests further downward motion.  Typically Friday volume is light heading into the weekend, so higher volume on a Friday is unusual.  The forecast remains “uncertain”.  The patterns for decline are developing, but they are not fully formed.

Subjective Comment:

Market volatility will remain until the political uncertainty regarding the debt ceiling is resolved.  Once resolved, the increasing money supply will cause US Markets to move higher, while the slowing growth of Euro and Chinese money supplies will cause those markets to crash.

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