Dow, Crude Oil, Natural Gas …

Many people are asking me about the above three markets. So let me review them with you today.

First, the Dow Industrials. They are going nowhere, but mainly sideways. If you are familiar with my past comments on the Dow, then you should be simply astonished at how important the 18,500 figure has become.

Identified by a combination of technical analysis and my AI models well over a year ago, 18,500 is clearly an important number.

We have yet to get a monthly close above that figure, which puts the Dow in a short- and intermediate-term neutral position, but still long-term bullish.

Please note: Even if the Dow does close, say the end of August, above 18,500 – that does not preclude a correction coming before further gains are made. The market would likely pull back to scare the dickens out of everyone, then catapult to the next major resistance level, which stands at roughly 19,500 to 20,000.

Here is my latest AI chart of the Dow. As you can see, like the metals, it is poised for a cycle low in October.

I may opt to add another volatility or bearish play for the Dow or S&P 500 soon, so stay alert please.

Crude oil: Rebounding from its recent low – where you should have grabbed some gains from your SCO position. Looking at the AI models below, the rebound should be fairly strong, and I may recommend going long (but always wait for my signals).

However, as you can see from the crude oil AI forecast, oil should peak out in late October, then collapse into mid-February 2017 – where we could see oil back in the low $30s.

Natural Gas: Unlike crude, natural gas is showing the potential for a decline into mid-September, then a huge one-month rally into October, and then another decline.