Monday, January 17, 2011

S&P 500 Peaking; $US$ Congestion: Gold Intermediate cycle correction commencing.

The S&P is near a balance point and overbought. Monitor the market closely for evidence of a peak and subsequent reversal.
Weekly Support and Resistance:
R2 1313.95
R1 1303.59
Pivot Point 1282.89
S1 1272.53
S2 1251.83

36*36 = 1296

Rally from Aug 27 to November 5th was 70 days duration. November 5th plus 70 days = January 14, 2011. An intermediate high near 1296 this week is highly probable.

US Dollar Index
Currently in a tricky congestion zone--cycles would suggest a mid-February resolution:

Feb Gold
Trend is turning down--an intermediate term correction is commencing.

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