It Looks Like SPX (S & P 500)/The Market Will Be Firm Early Tomorrow

It looks like SPX (S & P 500, http://stockcharts.com/charts/gallery.html?%24spx)/the market will be firm early tomorrow 12-9-08, see http://finance.yahoo.com/q/ta?s=%5EGSPC&t=5d&l=off&z=l&q=c&p=&a=p12,fs,w14&c=. SPX gapped up from 876.07 at today's open, and, didn't make a serious attempt at filling it, so, it's a likely bullish breakaway gap.

The broad market Walmart (WMT) Lead Indicator, at a super bearish -4.96% versus the S & P 500 (SPX) today/on 12-8, is a very bullish indication on a very short term basis, because, the market didn't decline as it normally would with such a bearish WMT Lead Indicator.

SPX (S & P 500) is in Wave 3 of the short term Wave 3 upcycle since 12-1-08, see http://stockcharts.com/charts/gallery.html?%24spx.

I'll be looking to day trade the Russell 2000 (RUT, http://finance.yahoo.com/q/ta?s=%5Erut&t=5d&l=off&z=l&q=c&p=&a=p12%2Cfs%2Cw14&c=, http://stockcharts.com/charts/gallery.html?%24spx) ultra long via UWM early tomorrow, or, I'll look to trade GDX (Gold Miners ETF, http://stockcharts.com/charts/gallery.html?gdx) long, see http://finance.yahoo.com/q/ta?s=gdx&t=5d&l=off&z=l&q=c&p=&a=p12%2Cfs%2Cw14&c=.

Both look like good longs tomorrow, and, note that GDX (http://stockcharts.com/charts/gallery.html?gdx) made a huge very bullish breakaway gap at today 12-8-08's open. Today I day traded SDS and made a little over 21 cents per share/$210+ per 1000 shares traded.

Nothing discussed on this Blog is a recommendation, or, should be construed as investment advice.

The gold sector NEM Lead Indicator was an extremely bearish -2.70% versus the XAU today/on 12-8, which is a bullish indication on a very short term basis. Also, the broad market Walmart (WMT) Lead Indicator must be factored in. It was a super bearish -4.96% versus the S & P 500 (SPX) today/on 12-8, which is a very bullish indication on a very short term basis.

GDX has an upside gap at 26.57 from 12-1-08's open that one should watch tomorrow.

The Russell 2000 (RUT, http://stockcharts.com/charts/gallery.html?%24rut) has upside gaps at 473.14 (filled 12-8-08), 491.23, 545.97, 619.40, 671.59, 679.58, 704.79, 705.74, and 753.74. There are probably more upside gaps, but, for now, that's all one needs to be concerned with.

The Oil and Gas sector XOM Lead Indicator was an extremely bearish -2.20% versus the XOI today/on 12-8, which is a bullish indication for the XOI on a very short term basis.

SPX (S & P 500, http://stockcharts.com/charts/gallery.html?%24spx)/the market/most sectors/indexes might have bottomed!, and, entered a Cyclical Bull Market, however, the Cyclical Bull Market for the major averages is likely to be a brief six to nine monthish one.

The gold/silver stock apocalypse since May 2006 (reliable gold sector lead indicator NEM since 1-31-06 and GDX/HUI/XAU since mid March 2008) might finally be over for most gold/silver stocks, see the XAU's daily candlestick chart at http://stockcharts.com/charts/gallery.html?%24xau, and, see reliable gold sector lead indicator NEM's daily candlestick chart at http://stockcharts.com/charts/gallery.html?nem. Note the large bullish inverse spike on Friday 12-5-08's bullish white (close above the open) candle, for the XAU, NEM, and, also GDX/HUI.

Friday 12-5-08's cycle low is a short term Wave 4 cycle low for GDX/HUI/XAU, see http://stockcharts.com/charts/gallery.html?%24xau, with the short term cycles obviously being huge long ones.

The fact that reliable gold sector lead indicator Newmont Mining (NEM, http://stockcharts.com/charts/gallery.html?nem) took out it's late October 2008 cycle low (21.40) on Thursday 11-20-08 (21.17), means that GDX/HUI/XAU have a "good chance" of doing the same, though it LOOKS LIKE (MAYBE) they've bottomed.

A Cyclical Bear Market began on 10-11-07 for SPX (S & P 500), began in late October 2007 for NDX (NASDAQ 100), and, began in late July 2007 for RUT (Russell 2000).

Please keep in mind that, after an index puts in a potential major cycle low, it has to hit a 5% follow through (after breaking the major downcycle trendline) major buy signal before the Trade the Cycles system indicates that a major cycle low has very likely occurred.

My original Trade the Cycles system uses the reliable Elliott Wave patterns (see the Trade the Cycles charts at http://www.joefrocks.com/GoldStockCharts.html) and maps them to cycles of various timeframes (an Elliott Wave is either an upcycle or a downcycle), from very short term (hours/days), short term (days/weeks), monthly (4-7 weeks), minor intermediate term (2-3 months), major intermediate term (3-12 months), long term (1 to 2 years), Cyclical Bull/Bear Market (6 months to 7 years, yes, a bull/bear can be relatively brief), Secular Bull/Bear Market (8-20+ years).

Gaps are very important also, since most gaps get filled and they often provide insight into when cycle highs/lows will occur.

.......http://www.JoeFRocks.com/

NEM XAU HUI