Thursday, September 30, 2010

Update

Here are the preliminary Energy Dates for the month of October:
  • October 4-8 with the 4th and 5th being quite significant and the 8th being very powerful. The 8th could be a huge amplitude day for the markets--all financial, currency and metal markets. If the VIX is going to break out to the upside it likely will happen next week before October 8th. A possible scenario would be for the S&P to shoot up to the 1175 time-price harmonic then begin to collapse on the 8th. However the 1175 is not absolutely required--if the markets continue to hover slightly above the 1141 level coming into next week a peak could be forming currently. Bottom line: the S&P is very close to making a significant top.
  • October 21-22: This is a time period that could see the markets meltdown--October 17-23 is a static date that has often been the time period of significant declines. (1987)
  • October 28-29: This date is particularly interesting since it will market the 81st (9X9) anniversary of the 1929 Crash.
U.S. Dollar Index
The US $ low will likely coincide with a peak in equities. The chart below shows the drastically oversold condition of the USDX. The ADX is beginning to set up for a SELL SIGNAL (see the S&P on April 26 2010 for an example of an ADX extreme sell signal) The RSI is now firmly below 30 which suggests that the market is oversold.(a divergence in this indicator would be classic)
There are some Fibonacci ratios coming into play between 76.75 and 78.25--these levels could be attained over the next few sessions.
The following dates are geometric cycle periods for the USDX:
  • Oct. 18: 300 days from Dec 22 2009 high
  • Oct. 17: 240 days from Feb 19 2010 high
  • Oct. 18: 150 days from May 21 2010 low
  • Oct. 19: 120 days from June 21 2010 low
  • Oct. 10: 270 days from Jan 13 2010 low
  • Oct. 11: 180 days from April 14 2010 low
  • Oct. 5: 120 days from June 7 2010 high
  • Oct. 5: 60 days from Aug 6 2010 low
Gann Support on the USDX is at 78.75 (225*) and 77.50 (210*)

There will be analysis on Gold and the S&P Thursday afternoon or evening.

Gold:
  • Approaching 1320 as mention last week: There is strong harmonic resistance at this level.
  • Silver--which is really over-bought--could spike to the $23-$23.50 level while Gold makes a run at 1320.
S&P 500
  • The market is hovering just above the 1141 harmonic. The market stinks of manipulation the last few days--perhaps the force of the 1141 level is too much to pull away from. However, prices could break loose and spike into the 1175 area coincident with the October 4-5th Energy Date. More on this over the next few days.

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