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Jeff Cooper: Late Rally Harbinger of New Highs or Another Fakeout?

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Was yesterday's little breakout the real deal and a harbinger of new highs or just another false move?

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Editor's Note: On Tuesday, April 14, Jeff Cooper is hosting a FREE trading webinar, showing you how he nailed 66% of his swing trades in Q1. Get the maestro's market outlook, and find out what he's watching right now in this special event.  Click here to register now!

A late rally saw the SPX close above what we've been pointing to as a key level -- 2088.

Remember, the Square of 9 Chart from earlier this week shows that 2088 aligns/vibrates with the 2007 top and the 2002 low.


Click to enlarge

Additionally, 2088 is 90 degrees square this week for a possible time/price square-out.

2088 is 9 squares up from the 2002 bear market low.

So the question is: was yesterday's little breakout the real deal and a harbinger of new highs or just another false move which will be erased today?

A Friday weekly close meaningfully above 2088 suggests higher prices.

It's worth remembering that 2100 aligns with the 666/667 bear market low. It is an important 3600 degrees up.

So the SPX has found resistance all year between 9 squares up from the 2002 bear market low and 10 squares up from the 2009 low.

So the direction out of this consolidation will be important. Would anyone be surprised if the first move out of the trading range was false?

Next week we will be 180 degrees from the big October 2014 major swing low.

It should be an important turn.

There is very little new to add to the market's tight trade this week.

As you know, gold and the miners are poised to pop off this recent pullback. Failing to do so means more work in what I believe is a basing process that will see the stocks lift meaningfully this year.

GLD turned its 3 Day Chart down yesterday and is gapping up today. A 2 month inverse H&S projects to 126, the prior swing high from January.

Recapturing its 50 day with authority will put GLD in a strong position and confirm a rally phase.

Franco-Nevada (FNV) looks like it's in a position to rally today.

See  GLD daily for 2015 here with 50 day m.a.



My thinking is that oil has bottomed for the year.

XOP shows what looks like a low-level 2 month Cup & Handle.

The 200 day above and the late November gap near 60 beckon and will probably magnetize XOP higher.

See daily XOP for 2015 here with 50 day.




EQT and Helmerich & Payne (HP) are names we've been trading.

We recently exited CLR and have a long swing in Oasis Petroleum (OAS) and EQT.

IBB turned its 3 Day Chart up yesterday for the first time since the decline off its March record high.

The subsequent action will be important to gauge.

A failure could lead to a break of its 50 day which has been well-tested several times since December.

See IBB from October with 50 day here.



Finally, keep an eye on Apple (AAPL) to see which way it comes out of its pennant. Will it reclaim Monday's breakout or break the bottom of the pennant triggering a Triangle Pendulum sell signal sending it to 115ish?

Editor's Note: On Tuesday, April 14, Jeff Cooper is hosting a FREE trading webinar, showing you how he nailed 66% of his swing trades in Q1.

Get the maestro's market outlook, and find out what he's watching right now in this special event.  Click here to register now!
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Position in GDXJ,JNUG,EQT

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