The big climax: Market Mood July 27-31, 2015

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Risk aversion reaches a peak the week of July 27 with a backdrop of violence in the news, according to this week's projected social mood pattern.  Spatial analysis shows risk aversion in the United States to be greater than the previous week, indicating further market losses are likely.  However, the bearish mood will not likely continue past this week, at least in the near term. 

 

A "new paradigm" pattern early in the week indicates that markets could attempt a new direction as early as late Monday.  Thursday and Friday volatility should pick up, and large moves are likely.   

 

Uncertainty vs. Hope: Market Mood July 13-17, 2015

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The week of July 13 is characterized by a struggle between uncertainty about the global situation and the desire to hope that everything is going to be OK.  This will create an unusually choppy (or whipsaw) condition in the markets.  Spatial analysis shows risk aversion in the United States to be slightly less this week than last week.  While conditions are not yet clearly bullish, they appear to be less bearish than the previous week.

 

 

Tentative optimism is projected to wane early in the week and be replaced by a nervous hope midweek.  By the end of the week, it may seem that it was too early to hope, as strong market moves return to the picture.

 

U.S. Market and Mood: June 21-27, 2015

Change is in the air as the week begins.  Instability, large moves, and uncertainty are all likely themes (see chart left), especially in the first half of the week.  Tension and anticipation build near the end of the week. 

A large directional move is indicated in the markets this week.  The increasing sense of vulnerability (chart below, right) is most often associated with risk-aversion, decreased spending, and down markets.