Thursday, April 28, 2011

The chart below was published on Feb 12th just before the Feb. 18th high at 1344.07. Since then the market traced out a classic A-B-C correction and made a low on March 16th. The market closed this afternoon at 1360.46--RIGHT IN THE AREA WHERE THERE IS SUBSTANTIAL HARMONIC RESISTANCE. If the market can successfully work its way through this natural congestion-resistance level the previous mentioned 'MELT-UP' could gain some steam.
The May 2nd-5th time frame is a possible pivot-trend change date so caution must be taken in this price area over the next week.

Gold works higher making the potential formation of the three peaks and domed house formation less probable. The continued potential validity of the formation would require a decline to commence over the next week.

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