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SPX, US Dollar, Gold: Charts Point to at Least a Near-Term Rally


The long-term remains up for grabs, but the near-term suggests a relief rally.

Another unclear market is gold, which has traded in a large range for more than a year. I've outlined some buy/sell triggers for gold on the chart below, but I should note that the 200-point trigger is quite aggressive -- so I would suggest traders remain cautious of any whipsaws occurring around the trigger point (if and when we get there, of course).

Click to enlarge

Next is the S&P 500 (INDEXSP:.INX) intermediate bearish wave count, with the bull count noted in green. I'm presently projecting at least a short-term rally to the 1378-1390 zone, but sustained trade above 1403 would be the first warning to bears that the (assumed) rally could grow some legs.

Click to enlarge

Finally, a simple short-term SPX chart with a bullish trade trigger.

Click to enlarge

In conclusion, bulls indeed managed to find support on Friday and the charts suggest a near-term rally will develop in equities. Currently, it appears more likely that this will simply be an oversold relief rally, but this is another potential inflection point, so we'll watch the key market levels to help determine if bulls can turn it into something more meaningful. Trade safe.

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