Friday, October 8, 2010

Market Geometry and Copper.

Here is an excellent example of market geometry. Copper produced a bearish engulfing line today at the 540 degree level. (360 + 180)

The markets--Copper, Gold, Silver and S&P should be interesting between now and October 21-22nd.

4 comments:

Anonymous said...

This will pull the trigger:

http://www.bloomberg.com/news/2010-10-11/dollar-weakness-overstates-fed-printing-press-as-imf-sees-best-g-3-growth.html

Joge said...

if the market were to crest at sp500 1168, how much of a pull back should we expect?

Fibocycle said...

A spike into the 1170s would be dramatic but time is running out for that. The first significant support should be at the 1134- 1141 level breaking that 1131.87 should be pivotal. If 1131.87 is broken 1122.78 will be tested next.
1107-1115 remain to be very important and if this anticipated decline is only a shallow correction then 1107 should hold. If 1107 is broken--depending upon the speed at which this is done the market could begin to accelerate to the downside.
The market is becoming very vulnerable to a violent type of correction. The nature of this decline will uncover many clues about the status of the intermediate and long term cycles.
The VIX is getting quite low...complacency is beginning to set like a fog over Wall Street.

Fibocycle said...

Copper, Silver and the U.S. Dollar are all in extreme technical conditions--a reversal in the US $ and the metals could set of a chain of events that would rattle the international equity markets. See the charts below.