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.

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.


Monday, April 25, 2011

Markets are about to get Volatile

GOLD (June)
Monday's 'spinning top' could represent point 23 of the three peaks and domed house formation. If this is the case a violent decline may be imminent. Aggressive traders should short June Gold risking the latest high. An alternative execution could take place on the break of the April 12th low of 1445.00

45 degrees from Feb 5 2010 @ 1052.40 @ 1497.40
60 degrees from Jan 28, 2011 @ 1310.9 @ 1463.32
60 degrees from March 15,2011 @ 1385 @ 1457.75
45 degrees from July 28 2010 @ 1181.70 @ 1453.70

Accordingly the US Dollar could be set to make an impressive rally while the S&P could begin an intermediate cycle decline.

Below is a 15 minute candlestick showing the breakdown from the top that was accompanied by divergent RSI, a pivot on the ADX line and increased volume during the declines.

see previous updates for details of the three peaks and domed house formation

This week has several significant astrological signatures that can possibly affect the markets--especially Gold, S&P and USDX.
April 22: Venus conjunct Uranus (Gold and Stocks)
April 27: Venus squared Pluto (Gold)
Sun trine Pluto (Gold)
April 30: Venus opposed Saturn (Stocks)
Mars conjunct Jupiter (Currencies)


Tuesday, April 19, 2011

GOLD and S&P UPDATE

June S&P
The June contract filled the gap that was made between the Feb 18th high and the Feb 22nd initial decline of the last swing. The ADX signaled a possible momentum high on April 6th.

60* Support is at 1296 (current level)
45* Support is at 1273
Swing Low = 1240.50

JUNE GOLD
The potential for the Three Peaks and Domed Top still exists. If this formation is actually coming to fruition the market is in the process of forming point 23. (the ultimate high before a steep decline) If the market continues to rally the chances of the TP&DH being formed diminish rather quickly. Until that is made obvious it is prudent to continue to monitor the daily action. The 1450 level is very important. If 1450 is broken the bearish action will become much more aggressive.

Friday, April 15, 2011

Gold Update

If the TP&DH formation is a possibility, the market should currently be making point 23--which should be the high before prices begin to deteriorate. A break below the blue trendline currently at 1440 would enhance the probability of the formation occurring.
45 degrees from July 28 @ 1155.90 = 1419.90
60 degrees from Jan 28 @ 1308.10 = 1446.66

Wednesday, April 6, 2011

Three Peaks and Domed House Formation II

Although it is rarely seen, the TP&DH is a fascinating formation to watch potentially unfold. Gold is possibly forming such a classic pattern. The next 3-4 weeks will be entertaining to watch unfold. Next task--find an energy point that may terminate short term and intermediate cycles concurrently. (point 23 or 25)
Sand Spring Advisors LLC has an excellent description of the technical formation

Monday, April 4, 2011

Three Peaks and the Domed House

Although the latest pattern is not 'verbatim', the trading in gold since the June 28, 2010 low looks eerily like a Three Peaks and a Domed House pattern discovered by George Lindsay. If the swing low at 1410.20 is taken out a very large decline could ensue.

Correction from original posting.
45 degree from July 28 2010 @ 1405.90 1.00 point / calendar day
60 degree from Jan 28 2011 @ 1422.42 1.73 points per calendar day

Note where the 45 and 60 degree lines intersect...March 13, 2011 @ 1384. The recent low was at 1382.50 on March 15th.