Wednesday, April 27, 2011

A Melt-Up?

S&P 500
The chart below shows a potential bullish formation that could resolve itself as a 'three wave' within a higher degree fifth wave. The ensuing break to the upside could unfold amidst panic short covering coincident with surge of bullish enthusiasm.
A break below 1294.70 (April 18 low) would negate the bullish formation and create a VERY bearish scenario.

45* support from Nov. 16 low = 1335.00
60* support from March 16 low = 1331.79

May 2-5 and May 15-19 have the potential of being pivot points.

The parameters on Gold remain the same.

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