Thursday, July 7, 2011

GOLD
Gold is looking more constructive and appears to be headed higher to test the top Bollinger Band. $1460 is the critical support. It may be an interesting time to be trading the gold volatility markets as the trend boundaries of the 2 month congestion converge. (GVZ)


Transports
Basic Market Survival Law. One does not stand in front of a speeding freight train and expect to trade another day.


S&P 500
S&P is riding the upper BB as it begins to test the previous high harmonic price level of 1360-1380. RSI is into over-bought so it appears that if the markets are headed higher a momentum thrust may occur, which will extend the over-bought condition. July 16-21st looks like it will be interesting as will August 5-8th and August 16-21st.



Nasdaq
NASDAQ is the first to follow the Transports into new high territory. Another rally may be harmonically related to rally 'a' or 'c'. The May 2nd high of 2887.75 will be tested with the 14 day RSI in VERY over-bought condition (83.89), therefore caution is warranted. There are a lot of intermediate cycle traders who exited the markets during the May-June correction--they are wanting to be 'back in' big time!!!!


1 comment:

astrofibo said...

SP500 Rallye of 15-20%!

http://astrofibo.blogspot.com/2011/06/sp500-daily-two-months-rally-of-15-20.html