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The June Closings 2018 (Dow, Gold, Euro)
By: Marty Armstrong | July 2, 2018

The Dow closing for June (2nd Quarter) came in at 24271.41 which was actually higher than the 1st quarter closing of 24103.11. Nonetheless, the intraday low did take place during the 2nd quarter. We warned that a June closing under 24740 will be an indication of weakness. We closed below that number, which is a warning that we can still make a 2-quarter reaction low. We also warned that as we head into July, support will be in the 23300 level. The major support during the 3rd quarter remains unchanged at 22415. Nevertheless, the market can still move lower into July. We have higher volatility showing up and a Directional Change for the month. A low in July may therefore be followed by a summer rally into September as long as we hold the key Bearish Reversals below. A weekly closing BELOW 23251 will signal a test of the monthly support zone. This week can provide a low if we we can test the 23250 level by Wed or Thurs. Caution is warranted this week.

In gold, we warned that a closing below the May low of 1281 on the nearest futures will also signal weakness. Gold closed June at 1254.50 leaving gold still pointing lower. Resistance in gold will stand during July at the 1309-1311 level with initial resistance at 1289 with support at 1235-1238 and 1214. A penetration of the 1235 area on a closing basis will warrant a retest of the 1214 area to 1200. A breach of the 1200 level points to a further decline to 1141.

In the cash Euro, we warned that a closing below 119 would keep the dollar in a strong position and the euro weak. We do have a Minor Monthly Bearish at 11662.which held since June closed at 11686. Nevertheless, key support during July lies at the 11450-11430 level. Resistance is moving down to the 11850 to 11900 level. It remain critical that 11550 holds if if that gives way, the we can see the euro retest the 10341 low made back during January 2017. The biggest target appears to be next January 2019.

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