- The lower tine of the Andrew's Pitchfork is providing support
- The 1261 level remains the most important point on the chart from a short term standpoint.
- VIX is edging higher and could break above 18 level. If this were to occur the likelihood of a further decline will increase significantly.
There is a possible Gartley '222' formation be set up.
- if the low at 1267.50 on Thursday is the first leg down of a further decline then the market may rebound in a 3 wave structure.
- the upside target can be estimated by the following formula: (B + C) - A = D = Target
- (1280.25 + 1273.25) - 1267.50 = 1286
Since the high was 1296 an 11-12 point initial stop on a speculative short would be placed at 1297-1298
Metals were weak on Thursday as well while the US $ held its own. Increased volatility in any or all of these markets will be a signal that an extended--intermediate--decline may be commencing in Gold, Silver and the equity markets.
More on this matter SUNDAY.