SPX (S & P 500) Bearish Breakaway Gap At 1467.95 And The WMT Lead Indicator Is Bearish Today
SPX (S & P 500, http://stockcharts.com/charts/gallery.html?%24spx) has a bearish breakaway gap at 1467.95 from Monday's open that it failed to fill (hence bearish breakaway gap), see http://finance.yahoo.com/q/ta?s=%5Espx&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=.
From mid session Tuesday 12-18 into early Wednesday SPX did an Elliott Wave 12345 up down up down up upcycle, then did a Wave A down that bottomed late Wednesday 12-19/yesterday, followed by a Wave B up that peaked just after today's/12-20 open, and, is now in Wave B of Wave C, and, should soon enter the final Wave C of Wave C (on the Yahoo 5 day intraday chart). This jives with today's bearish WMT Lead Indicator, see http://finance.yahoo.com/q/ta?s=%5EHUI&t=1d&l=off&z=l&q=l&p=&a=m26-12-9,p12,fs,w14&c=wmt,%5EGSPC.
Since SPX's (S & P 500) Wave A of Wave C (on the daily chart, see next link) appears to have bottomed on Monday it's not a good short right now, since there isn't much downside if SPX bottomed on Monday, see http://stockcharts.com/charts/gallery.html?%24spx.
Gold will be a good short once it breaks down below it's triangle formation in effect since the 11-7-07 Wave 1 Cyclical Bull Market cycle high at $848, see http://stockcharts.com/charts/gallery.html?%24gold.
I'm looking to trade NEM's short term Wave 1 upcycle that probably began Tuesday 12-18 at 46.25 (see http://stockcharts.com/charts/gallery.html?nem), and, I'm looking to trade WMT's short term Wave 5 upcycle that probably began Tuesday 12-18 at 46.87 (see http://stockcharts.com/charts/gallery.html?wmt).
I'm waiting to go long because of the expected market/SPX weakness (discussed in the first two paragraphs).
As a long term multi-year investor in any stock, commodity, etc. you want to buy near the primary multi-year Secular Bull Market/very long term upcycle trendline. Gold's primary multi-year Secular Bull Market/very long term upcycle trendline is at $490ish right now, so, gold would be a great buy in the $490-520 range. When the vast majority of gold writers say it's a great time to buy or are bullish, as they almost always are, it's rarely a good time for long term investors to buy.
HUI/XAU's Wave 2 Cyclical Bear Market basically began 5-11-06, see charts 7 and 9 at http://www.joefrocks.com/GoldStockCharts.html. The primary Secular Bull Market trendlines since late 2000 are at 210-230 for HUI and at 90-95 for the XAU. Those are the targets for where the Wave 2 Cyclical Bear Market will bottom. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
From mid session Tuesday 12-18 into early Wednesday SPX did an Elliott Wave 12345 up down up down up upcycle, then did a Wave A down that bottomed late Wednesday 12-19/yesterday, followed by a Wave B up that peaked just after today's/12-20 open, and, is now in Wave B of Wave C, and, should soon enter the final Wave C of Wave C (on the Yahoo 5 day intraday chart). This jives with today's bearish WMT Lead Indicator, see http://finance.yahoo.com/q/ta?s=%5EHUI&t=1d&l=off&z=l&q=l&p=&a=m26-12-9,p12,fs,w14&c=wmt,%5EGSPC.
Since SPX's (S & P 500) Wave A of Wave C (on the daily chart, see next link) appears to have bottomed on Monday it's not a good short right now, since there isn't much downside if SPX bottomed on Monday, see http://stockcharts.com/charts/gallery.html?%24spx.
Gold will be a good short once it breaks down below it's triangle formation in effect since the 11-7-07 Wave 1 Cyclical Bull Market cycle high at $848, see http://stockcharts.com/charts/gallery.html?%24gold.
I'm looking to trade NEM's short term Wave 1 upcycle that probably began Tuesday 12-18 at 46.25 (see http://stockcharts.com/charts/gallery.html?nem), and, I'm looking to trade WMT's short term Wave 5 upcycle that probably began Tuesday 12-18 at 46.87 (see http://stockcharts.com/charts/gallery.html?wmt).
I'm waiting to go long because of the expected market/SPX weakness (discussed in the first two paragraphs).
As a long term multi-year investor in any stock, commodity, etc. you want to buy near the primary multi-year Secular Bull Market/very long term upcycle trendline. Gold's primary multi-year Secular Bull Market/very long term upcycle trendline is at $490ish right now, so, gold would be a great buy in the $490-520 range. When the vast majority of gold writers say it's a great time to buy or are bullish, as they almost always are, it's rarely a good time for long term investors to buy.
HUI/XAU's Wave 2 Cyclical Bear Market basically began 5-11-06, see charts 7 and 9 at http://www.joefrocks.com/GoldStockCharts.html. The primary Secular Bull Market trendlines since late 2000 are at 210-230 for HUI and at 90-95 for the XAU. Those are the targets for where the Wave 2 Cyclical Bear Market will bottom. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, SPX, XAU
posted by Joe Ferrazzano at
10:57 AM
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